Islamic Republic of Afghanistan: Transport Network Development Investment Program

Transcription

1 Facility Administration Manual Project Number: MFF Number: 0063 Grant Number(s): G0261-AFG & G0262-AFG (Tranche 1) G0327-AFG & G0328-AFG (Tranche 2) G0355-AFG (Tranche 3) G0422-AFG & G0423 (Tranche 4) December 2014 Islamic Republic of Afghanistan: Transport Network Development Investment Program

2 CONTENTS I. PROJECT DESCRIPTION 5 A. Rationale 5 II. IMPLEMENTATION PLANS 7 A. Project Readiness Activities 7 B. Overall Program Implementation Plan 10 C. Assessment of Physical Progress during Implementation 15 III. PROJECT MANAGEMENT ARRANGEMENTS 16 A. Project Implementation Organizations Roles and Responsibilities 16 B. Project Organization Structure 18 IV. COSTS AND FINANCING 22 A. Allocation and Withdrawal of Grant Proceeds 23 B. Cost Estimates 26 C. Contracts and Disbursements S-curve 43 D. Fund Flow Diagram 50 V. FINANCIAL MANAGEMENT 51 A. Financial Management Assessment 51 B. Disbursement 54 C. Accounting 55 D. Auditing 55 E. Public Disclosure of Audited Financial Statements 55 VI. PROCUREMENT AND CONSULTING 56 A. Advance Contracting and Retroactive Financing 56 B. Procurement of Goods, Works and Consulting Services 56 VII. SAFEGUARDS 83 A. Environment 83 B. Land Acquisition and Resettlement 84 C. Indigenous People 86 VIII. GENDER AND SOCIAL DIMENSIONS 87 IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND CCOMMUNICATION 95 A. Project Design and Monitoring Framework 95 B. Monitoring 109 C. Evaluation 110 D. Reporting 110 E. Stakeholder Communication Strategy 111 X. ANTICORRUPTION POLICY 113 XI. ACCOUNTABILITY MECHANISM 114 XII. RECORD OF FAM CHANGES 115

3 ATTACHMENTS: Attachment 1: Detailed Procurement Schedule for Baharak to Eshkashim subproject Attachment 2: Updated Land Acquisition and Resettlement Framework Attachment 3: Outline of a Land Acquisition and Resettlement Plan Attachment 4: Environmental Assessment and Review Framework Attachment 5: Project Procurement Risk Assessment Report for Tranche 4 Attachment 6: Terms of Reference for Consulting Services for Project Management and Construction Supervision Attachment 7: Concept Paper on O&M Pilot Attachment 8: Capacity Development Plan for the Afghanistan Railway Authority Facility Administration Manual Purpose and Process The facility administration manual (FAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. Ministry of Public Works (MPW) is wholly responsible for the implementation of ADB financed transport sector projects and specifically the Transport Network Development Investment Program, as agreed jointly between Ministry of Finance (MOF) and ADB, and in accordance with Government s and ADB s policies and procedures. ADB staff is responsible to support implementation including compliance by MPW of their obligations and responsibilities for project implementation in accordance with ADB s policies and procedures. At Grant Negotiations, the recipient and ADB have agreed to the FAM and ensure consistency with the Framework Financing Agreement (FFA). Such agreement has been reflected in the minutes of the Grant Negotiations. In the event of any discrepancy or contradiction between the FAM on one hand, and the FFA and grant agreements on the other hand, the provisions of the FFA and grant agreements shall prevail. After ADB Board approval of the investment program's report and recommendations of the President (RRP), changes in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the FAM.

4 Abbreviations AC advisory committee ACN advance contracting notice ADB Asian Development Bank AfRA Afghanistan Railway Authority AITF Afghan Infrastructure Trust Fund DMF design and monitoring framework EA executing agency EARF environmental Assessment and Review Framework EIA environmental impact assessment EMP environmental management plan EU European Union FAM facility administration manual FBS fixed budget selection FFA framework financing agreement GOA Government of Afghanistan HIV/AIDS human immunodeficiency virus/ acquired immunodeficiency syndrome IARS imprest account reconciliation statement ICB international competitive bidding IEE initial environmental examination IPP indigenous people plan IPPF indigenous people planning framework LARF land acquisition and resettlement framework LARP land acquisition and resettlement plan LCS least cost selection LIBOR London interbank offered rate MFF multitranche financing facility MOF Ministry of Finance MOM Ministry of Mines MPW Ministry of Public Works NCB national competitive bidding NGOs nongovernment organizations NTP National Transport Plan O&M operation and maintenance PFR periodic financing report PMO Project Management Office PMU project management unit PPMS project performance monitoring system QBS quality based selection QCBS quality- and cost based selection RRP report and recommendation of the President to the Board SBD standard bidding documents SC steering committee SGIA second generation imprest accounts SOE statement of expenditure SPN specific procurement notice SPRSS summary poverty reduction and social strategy SPS Safeguard Policy Statement SSS single source selection TOR terms of reference

5 I. PROGRAM DESCRIPTION A. Rationale 1. Transport Sector in Afghanistan. Thirty years of conflict has severely damaged the nation s transport infrastructure and hindered strategic planning, construction, rehabilitation, and maintenance. Integrated transport network infrastructure investments, systematically planned and implemented, will reduce user transport costs, expand access to markets and social services, spur trade and logistics, and promote social integration and reconciliation. 2. Despite significant investment over the last nine years, Afghanistan s transport sector has chronic operational and institutional bottlenecks, primarily the result of: (i) poor strategic construction and periodic maintenance planning; (ii) weak authorities with limited institutional capacity and sector coordination across agencies; (iii) lack of regulatory enforcement and cost recovery for maintenance funding; (iv) limited numbers of quality contractors and consultants in the private sector; and (v) unsatisfactory project and contract management capacity. These bottlenecks raise domestic transport costs, constrain regional cooperation and integration opportunities, and undercut the country s competitiveness. 3. The Transport Network Development Investment Program (the investment program) will develop and maintain land transport infrastructure through physical investment and invest in capacity development for the broader transport sector using a holistic sector-based approach. It will promote regional cooperation and integration, and widen access to social and economic opportunities via improved land transport infrastructure in Afghanistan. The investment program will also strengthen the government s capacity in strategic planning, asset management, project preparation and implementation, and governance in the transport sector. 4. The Government requested a multitranche financing facility (MFF) in an amount up to $740 million from the Asian Development Bank s (ADB) Asian Development Fund (ADF) to help finance a part of the Transport Sector Strategy. The MFF was approved along with Tranche 1 in October As envisaged, the MFF will consist of several tranches, subject to the government's submission of related periodic financing requests, execution of the related loan agreement for each tranche, and fulfillment of terms and conditions and undertakings set forth in the framework financing agreement. 5. Impact and Outcome. The impact of the investment program will be increased trade and jobs. The outcome will be increased movement of goods and services and better connectivity for people and businesses. 6. Outputs of the Investment Plan. The outputs include: (i) 578 km of reconstructed or rehabilitated regional and national roads, 1 (ii) 225 km of constructed railway and stations between Mazar-e-Sharif and Andkhoy, (iii) efficient operation and maintenance (O&M) of the Hairatan to Mazar railway line, recently completed under the ongoing ADB funded Hairatan to Mazar-e-Sharif Railway Project ( Railway Project ), 2 (iv) strengthened capacity at the Ministry of Public Works (MPW), and (v) improved transport sector governance. The investment program outputs will be achieved through two components: transport infrastructure development and transport network management capacity development. 1 Approximate distances. 2 ADB Report and Recommendation of the President to the Board of Directors on the Proposed Asian Development Fund Grant Islamic Republic of Afghanistan: Hairatan to Mazar-e-Sharif Railway Project. Manila. 5

6 7. Outputs of Tranche 1. Under the transport infrastructure development component for Tranche 1, outputs include 145 km of road subprojects including: (i) reconstructing and widening the 50 km Bagramy to Sapary Road, which is the first section of the Kabul to Jalalabad Road that provides the cross-border link from the capital to Pakistan; (ii) rehabilitating the 51 km Jabul Saraj to Nijrab Road linking the Ring Road with the Kabul to Jalalabad road located approximately 50 km east of Kabul, northwest-southeast bypass around Kabul; and (iii) reconstructing the 44 km Faizabad to Baharak road, the first section in completing the link to the northern cross-border link with Tajikistan. Another output under his component is providing additional operation and maintenance (O&M) support to the Hairatan to Mazar-e-Sharif railway line. The capacity development component under Tranche 1 will support a range of activities to improve governance and plan the broader transport sector and increase MPW s institutional capacity. These include support for: (i) sector development activities including a governance needs assessment and the development of a National Transport Plan (NTP), including railway sub-sector plan, and new sub-sector regulatory authorities; (ii) capacity building for railway operation and maintenance and inspections; (iii) feasibility and design studies for a new Mazar Andkhoy rail link; (iv) business planning and an organizational structure assessment for MPW; (v) the establishment of an asset management system for MPW; and (vi) implementation of the investment program by the project management office (PMO) including procurement, construction and contract supervision, safeguards implementation and feasibility studies for, and preparation of, subsequent tranche projects. 8. Outputs of Tranche 2. Under the transport infrastructure development component for Tranche 2, outputs include 188 km of road subprojects including: (i) reconstructing and widening the 106 km Sapary to Jalalabad Road, which is the second section of the Kabul to Jalalabad Road that provides the cross-border link from the capital to Pakistan; (ii) rehabilitating the 32 km Chah-e-Anjir to Gereshk road, which is Section 2 of the Lashkar Gah to Gereshk road, linking the capital of Helmand province to the Ring Road; and (iii) reconstructing 50 km of the Sharan to Angoor-Ada, which will complete reconstruction of a cross border link from Ghanzi to Pakistan. Activities under the transport network management capacity development component will continue in Tranche 2, but will only be defined more specifically when the performance of ongoing activities funded under this component in Tranche 1 and subsequent outputs become clear in 2013, along with continuing reform directives of the government towards the sector. 9. Outputs of Tranche 3. Under the transport infrastructure development component for Tranche 3, outputs include: (i) reconstructing and widening the 178 km Dar-i-Suf to Yakawlang subproject road, which is the remaining section of the North South Corridor to be rehabilitated; (ii) community development infrastructure along the subproject road alignment with focus on sanitation facilities; and (iii) pre-feasibility studies. 10. Outputs of Tranche 4. Under the transport infrastructure development component for Tranche 3, outputs include: (i) reconstructing and widening the 108 km Baharak to Eshkashim subproject road (which is the remaining section of the Faizabad to Eshkashim road to be rehabilitated), including provision of support for Project and Investment Program implementation by MPW in the areas of procurement, construction and contract supervision, safeguard policy implementation; (ii) community development infrastructure along the subproject road alignment with focus on sanitation facilities; (iii) capacity building for the Afghanistan Railway Authority (AfRA) based on the institutional development plan agreed upon by the AfRA and the European Union (EU), and (iv) provision of support for increasing the efficiency of traffic and management CAREC Corridors 5 and 6 to facilitate trade and sustainability. 6

7 II. IMPLEMENTATION PLANS A. Project Readiness Activities 11. Tranche 1. At the completion of the project fact-finding mission on 6 June 2011, the Project Management Office (PMO) with key staff (procurement, engineering, financial management, and accounting) continues to function and support ADB MPW partnership efforts in completing and revising detailed designs, advanced procurement action and tender documents, and safeguards documents for Tranche 1. Table 2.1 Program Readiness Activities Tranche 1 Indicative Activities Who s Responsible May Jun Jul Aug Sep Oct Nov Dec Qtr1 Designate Executing Agency MOF Establish project implementation arrangements MOF/MPW Allocate Government MOF/MPW counterpart funds Approve and disclose safeguard documents EARF and IEEs MPW, ADB LARF and LARPs MPW, ADB Complete procurement MOR/PR documents for all contracts and consultancy services Advance contracting actions MPW A. Civil Work (3 packages) Invitation for bids for ICB MPW Contract Award MPW B. Consulting service for construction supervision (3 packages) Request for Proposal MPW Contract Award MPW C. Consulting service for institutional reform and restructuring Request for Proposal ADB/MPW Contract Award ADB/MPW ADB Board approval of MFF/PFR 1 report ADB Grant negotiations ADB, MOF/MPW Government legal opinion MOF provided Grant effectiveness ADB ADB = Asian Development Bank, EARF = Environmental Assessment and Review Framework, ICB = International Competitive Bidding, IEE = Initial Environmental Examination, LARF = Land Acquisition and Resettlement Framework, LARP = Land Acquisition and Resettlement Plan; MFF = Multitranche Financing Facility, MOF = Ministry of Finance, MPW = Ministry of Public Works, PFR = Periodic Financing Request. 7

8 12. Tranche 2. Various resources were used to accomplish the required due diligence of the subprojects under Tranche 2. Using their existing contract with Mott MacDonald, DFID financed the due diligence for Chah-e-Anjir to Gereshk road. Given their presence and previous work on the Sharan-Angoor-Ada road, USAID and USACE provided significant assistance in drafting the IEE, LARP, BOQ, and traffic counts for this subproject. MPW provided the BOQ, draft IEE, and traffic counts on the Sapary Jalalabad road. ADB provided technical assistance, staff consultant, and staff resources to support LARP and IEE preparation and approval, economic analysis preparation and finalization, and preparation of procurement documentation. Table 2.2 Program Readiness Activities Tranche Indicative Activities Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Responsible Establish project implementation MPW arrangements 1 Allocate government counterpart Oct MOF, MPW funds (budgetary considerations) Complete Procurement Documents Dec ADB, MPW Approve and disclose safeguards documents ADB, MPW Post IEE & EMP Sep Dec ADB, MPW Post LARP/updated LARP Nov Dec ADB, MPW Undertake advance contracting actions ADB, MPW A. Civil Works (3 packages) Post APN Jul ADB, MPW Invitation for bids (ICB) Jan ADB, MPW Contract Award Jul ADB, MPW B. Consulting Services for PMSC (3 packages) Request EOIs Jul ADB, MPW Request for Proposal Oct ADB, MPW Contract Award Jul ADB, MPW Approve PFR2 report Dec ADB Sign the grant agreements Mar ADB, MOF Issue the legal opinion Apr MOF Declare grant effectiveness Apr ADB 1 The implementing arrangement has been established for the investment program. ADB = Asian Development Bank, APN = advance procurement notice, EMP = environment management plan, IEE = initial environment examination, ICB = international competitive bidding, LARP = land acquisition and resettlement plan, MPW = Ministry for Public Works, MOF = Ministry of Finance, PFR = periodic financing report. 13. Tranche 3. Various resources were used to accomplish the required due diligence of the subproject under Tranche 3. Using their existing contract with Dongshim Engineering & Consultants Co. Ltd, MPW financed most of the due diligence required for the Dar-i-Suf to Yakawlang road. As such, MPW provided the BOQ, draft IEE, and traffic counts. ADB provided technical assistance, staff consultant, and staff resources to support LARP and IEE preparation and approval, economic analysis preparation and finalization, and preparation of procurement documentation. 8

9 Table 2.3 Program Readiness Activities Tranche Indicative Activities Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Responsible Establish project implementation MPW arrangements 1 Allocate government counterpart funds (budgetary considerations) Mar MOF, MPW Complete Procurement Documents Sep ADB, MPW Approve and disclose safeguards ADB, MPW documents Post IEE & EMP Jun ADB, MPW Post LARP/updated LARP Jul Dec ADB, MPW Undertake advance contracting ADB, MPW actions A. Civil Works (1 package) Post APN Sep ADB, MPW Invitation for bids (ICB) Oct ADB, MPW Contract Award Jul ADB, MPW B. Consulting Services for PMSC (1 package) Request EOIs Oct ADB, MPW Request for Proposal Oct ADB, MPW Contract Award Jul ADB, MPW Approve PFR3 report Sep ADB Sign the grant agreements Oct ADB, MOF Issue the legal opinion Nov MOF Declare grant effectiveness Dec ADB 1 The implementing arrangement has been established for the investment program. ADB = Asian Development Bank, APN = advance procurement notice, EMP = environment management plan, IEE = initial environment examination, ICB = international competitive bidding, LARP = land acquisition and resettlement plan, MPW = Ministry for Public Works, MOF = Ministry of Finance, PFR = periodic financing report. 14. Tranche 4. Various resources were used to accomplish the required due diligence of the subproject under Tranche 4. Using their existing contract with the joint venture of BETS Consultant Services Ltd. and SARM Associates Bangladesh in association with SMART Engineering Team Ltd. Afghanistan, MPW financed most of the due diligence required for the Baharak to Eshkashim road. As such, MPW provided the BOQ, draft IEE, and traffic counts. ADB provided technical assistance, staff consultant, and staff resources to support LARP and IEE preparation and approval, economic analysis preparation and finalization, and preparation of procurement documentation. Table 2.4 Program Readiness Activities Tranche Indicative Activities Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Responsible Establish project implementation MPW arrangements 1 Allocate government counterpart Oct MOF, MPW funds (budgetary considerations) Complete Procurement Documents Jan ADB, MPW Approve and disclose safeguards documents ADB, MPW 9

10 Indicative Activities Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Responsible Post IEE & EMP Oct Mar ADB, MPW Post LARP/updated LARP Nov Mar ADB, MPW Undertake advance contracting actions ADB, MPW A. Civil Works (1 package) Post APN Dec ADB, MPW Invitation for bids (ICB) Mar ADB, MPW Contract Award Nov ADB, MPW B. Consulting Services for PMSC (1 package) Request EOIs Dec ADB, MPW Request for Proposal Jan ADB, MPW Contract Award Sep ADB, MPW Approve PFR 4 report Dec ADB Sign the grant agreements Jan ADB, MOF Issue the legal opinion Apr MOF Declare grant effectiveness May ADB 1 The implementing arrangement has been established for the investment program. ADB = Asian Development Bank, APN = advance procurement notice, EMP = environment management plan, IEE = initial environment examination, ICB = international competitive bidding, LARP = land acquisition and resettlement plan, MPW = Ministry for Public Works, MOF = Ministry of Finance, PFR = periodic financing report. B. Overall Program Implementation Plan 15. The eight-year investment program is scheduled for completion by 31 December The overall program implementation plan is presented in table below, while the detailed implementation schedule for the subsequent tranches will be prepared during processing. 16. The overall implementation plan may be updated annually by PMO together with ADB. The updated draft implementation plan will be submitted to ADB in Month 10 of the preceding year for no objection, a response on which will be provided on or before Month 12. Table 2.5 Realized and Planned Investment Program Implementation Tranche Grant Nos. Implementation Approval Closing Date No. Period Date / years 12 Oct Dec / years 12 Dec Dec years 15 Sep Dec years 14 Dec Dec 19 10

11 Table 2.6 Tranche 1 Program Implementation Plan Indicative Activities A. DMF Output 1 constructed 145 km Activity 1.1 General Requirements 1 Activity 1.2 Earthworks Activity 1.3 Culverts, Drainage & Protection Activity 1.4 Concrete Works Activity 1.5 Pavement Works Activity 1.6 Road Furnitures Output 2 strengthened capacity of MPW Output 3 strengthened trancpsort sector governance Output 4 O&M of Hairatan Mazar Railway 11 B. Management Activities Procurement activities Consultant selection procedures Environment management plan key activities Land acquisition and resettlement preparation Communication strategy key activities Annual/Mid-term review Project completion report 1 E.g., personnel/w orkers, equipment, office site, furniture, site survey, site clearance, diversion and traffic control measuers

12 Table 2.7 Tranche 2 Program Implementation Plan Indicative Activities A. DMF Output 1 constructed 188 km Activity 1.1 General Requirements 1 Activity 1.2 Earthworks Activity 1.3 Culverts, Drainage & Protection Activity 1.4 Concrete Works Activity 1.5 Pavement Works Activity 1.6 Road Furnitures Output 2 strengthened capacity of MPW Output 3 strengthened trancpsort sector governance 12 B. Management Activities Procurement activities Consultant selection procedures Environment management plan key activities Land acquisition and resettlement preparation Communication strategy key activities Annual/Mid-term review Project completion report 1 E.g., personnel/w orkers, equipment, office site, furniture, site survey, site clearance, diversion and traffic control measuers

13 Table 2.8 Tranche 3 Program Implementation Plan Indicative Activities A. DMF Output 1 constructed 182 km Activity 1.1 General Requirements Activity 1.2 Earthworks Activity 1.3 Culverts, Drainage & Protection Activity 1.4 Concrete Works Activity 1.5 Pavement Works Activity 1.6 Road Furnitures Output 2 strengthened capacity of MPW Output 3 strengthened trancpsort sector governance 13 B. Management Activities Procurement activities Consultant selection procedures Environment management plan key activities Land acquisition and resettlement preparation Communication strategy key activities Annual/Mid-term review Project completion report 1 E.g., personnel/w orkers, equipment, office site, furniture, site survey, site clearance, diversion and traffic control measuers

14 Table 2.9 Tranche 4 Program Implementation Plan Indicative Activities A. DMF Output 1 constructed 108 km Activity 1.1 General Requirements 1 Activity 1.2 Earthworks Activity 1.3 Culverts, Drainage & Protection Activity 1.4 Concrete Works Activity 1.5 Pavement Works Activity 1.6 Road Furnitures Output 2 community development infrastructure Output 3 strengthened capacity of AfRA Output 4 improved efficiency of transport and traffic on CAREC corridors 5 & 14 B. Management Activities Procurement activities Consultant selection procedures Environment management plan key activities Land acquisition and resettlement preparation Communication strategy key activities Annual/Mid-term review Project completion report 1 E.g., personnel/w orkers, equipment, office site, furniture, site survey, site clearance, diversion and traffic control measuers

15 C. Assessment of Physical Progress during Implementation 17. Each project implementation activity carries certain weight and should be accounted for while computing the physical progress. In this respect, Table 2.10 shows guidelines for computing physical progress of the Tranche 1. This will be used both by PMO and ADB for the assessment of physical progress of all tranches at any time during the project implementation. Table 2.10: Tranche 1 Implémentation Progress (%) Activities Assigned Weight (a) Actual Progress (b) Weighted Progress (a) x (b) Establishment & Staffing of PMO 5% 100% 5% PMSC Recruitment 5% 100% 5% Design and Tender Documents 5% 100% 5% Civil Works Procurement 5% 100% 5% Physical Completion of Works & Disbursements 70% 54% 37% Network Management Capacity Development 10% 10% 1% Total Weight Implementation Progress 100% 58% 15

16 III. PROJECT MANAGEMENT ARRANGEMENTS A. Project Implementation Organizations Roles and Responsibilities Project implementation organizations Advisory Committee (MOF, MPW, MOM, MOT, ADB, Other donors to the sector) Ministry of Public Works (Executing Agency) Management Roles and Responsibilities Advise on the investment program, reforms and restructuring of MPW Convene on biannually basis Co-chaired by MOF and MPW Overall responsibility in coordinating program, tranches and projects; Overall project management; finalizing surveys, design, bidding documents, and contract awards; Overall construction supervision with the consultants, quantity and quality validation of installation of civil works, equipment and procured machinery; Provide timely agreed counterpart funds and approval for project activities; Comply with all loan covenants; Review progress on institutional reforms and restructuring; Monitor and evaluate project activities and outputs, including periodic review, preparation of review and progress reports reflecting issues and time-bound actions taken (or to be taken), and their timely submission to ADB; Prepare regular periodic progress reports, monitoring and evaluation reports, and project completion report and their timely submission to MOF and ADB; Endorse to ADB the authorized staff in EA with approved signatures for processing payments and maintaining the imprest account(s); Establish strong financial management system and submit timely withdrawal applications to ADB, conducting timely financial audits as per agreed timeframe, submitting audited project account reports, and taking recommended actions; Process and submit to ADB any request, when required, for reallocating the grant proceeds; and Submit subsequent PFRs for subsequent tranches and projects under the investment program Involve beneficiaries and civil society representatives in all stages of project design and implementation; Public disclosure of project outputs and procurement results; Quality assurance of works, and services of consultants and counterpart staff; Ensure compliance with all loan covenants and reporting to the EA on covenants; Prepare, implement, and monitor safeguards in accordance with the LARF and EARF, ADB s SPS (2009), Grant Agreement and the Financing Agreement; Establish a grievance redress mechanism with a dedicated grievance staff to address all subproject-related grievance; Ensure projects' sustainability during post implementation stage and reporting to ADB on the assessed development impacts. 16

17 Project implementation organizations Steering Committee (MPW, MOF, and ADB) ADB Ministry of Finance (MOF) Management Roles and Responsibilities Overall guidance on project Approve the annual activity plan Review implementation progress and resolve issues; Act as bid evaluation committee for the procurement of works, goods and services ; Depute/appoint staff for project management office (PMO); Review performance of consultants and contractors; Convening on monthly basis or as and when required; Assist the MPW in providing timely guidance at each stage of the project for smooth implementation in accordance with the agreed implementation arrangements; Review all the documents that require ADB approval; Conduct regular project review missions, a midterm review, and project completion mission Proceed withdrawal applications and release eligible funds; Update regularly the project performance review reports with the assistance of MOF and MPW; Update and post on ADB website the project information for public disclosure, and the safeguards documents in accordance with the ADB SPS (2009). Signing the FFA and the Grant Agreement for each Project; Monitoring of the investment program implementation and providing respective coordination and facilitation; Budgeting, allocating and releasing counterpart funds; Endorsing to ADB the authorized staff with approved signatures for WAs processing; and Processing and submitting to ADB any request, when required, for reallocating the grant proceeds. ADB = Asian Development Bank; EA = executing agency; EARF = Environmental Assessment Review Framework; FFA = framework financing agreement; LARF = Land Acquisition and Resettlement Framework; MOF = Ministry of Finance; MOM = Ministry of Mines; MOT = Ministry of Transport; MPW = Ministry of Public Works; PFRs = periodic funding requests; PMO = Project Management Office; SC = Steering Committee; SPS = Safeguard Policy Statement; WA= withdrawal application. 17

18 Key Persons Involved in Implementation Executing Agency Ministry of Public Works (MPW) Grant Recipient and Oversight Agency Ministry of Finance (MOF) ADB Transport & Communications Division (CWTC) Central and West Region Department Mission Leader Officer's Name: Atiq Halim Position: Director, Project Management Office Telephone: address: Officer's Name: Dr. Mohammad Mustafa Mastoor Position: Deputy Minister Telephone: address: Staff Name: Xiaohong Yang Position: Director Telephone No.: address: xyang@adb.org Staff Name: David Hill Position: Senior Transport Specialist Telephone No.: address: dhill@adb.org B. Project Organization Structure 1. Organizational Structure of the Investment Program 18. The following figure depicts the proposed organizational structure for implementation of the Investment Program. An Advisory Committee (AC) will be constituted with the representation from MPW, MOF, Ministry of Mines (MOM), Ministry of Transport (MOT), ADB and other donors 3 in order to advise on the Investment Program, reforms and restructuring of MPW as agreed under the Transport Sector Strategy. This committee will meet biannually, review, and advise on the status of milestones achievements for the subsequent tranches. The Advisory Committee will be co-chaired by representatives of MOF and MPW. 19. The Advisory Committee s role will be to provide advice to MPW in connection with the transport network management capacity component of the Investment Program, in particular the development of a National Transport Plan and the establishment of national road and railway authorities. The Advisory Committee convened for the first time on or before 31 December 2011 and will continue to meet at least biannually. 20. A Steering Committee (SC) will be constituted for the Investment Program. It will be established based on the new roles and responsibilities agreed with ADB by MPW and MOF. The SC will meet monthly or, if required, be responsible for overall guidance and perform key functions like approving the annual project budget and activity plan, reviewing, and advising on implementation issues and approving procurements. 3 Particularly those who contribute to the Afghanistan Infrastructure Trust Fund (AITF). 18

19 21. The Steering Committee s role will include: (i) overall guidance on Investment Program implementation; (ii) approval of an annual activity plan for the PMO; (iii) act as a bid evaluation committee for the procurement of works, goods and consulting services, and; (iv) appoint staff to the PMO; and (v) review the performance of consultants and contractors. The Steering Committee will convene at least monthly and also as required. 22. MPW will be the executing agency (EA) for all tranches, which has the mandate for planning, designing and implementing transport projects as well as policy and regulatory authority over the sector. The Project Management Office (PMO) that has already been established within MPW for day-to-day administration and execution of ADB-financed road sector projects will be responsible for day-to-day preparation and implementation of Investment Program projects in accordance with the provisions of the FFA, this FAM, and related legal agreements. The PMO will be strengthened through the transport network management capacity development. 23. With the concurrence of MOF and ADB, MPW will be responsible for appointing a Project Director for the PMO with overall responsibility for the fulfillment of the PMO's mandate. In addition, the PMO shall comprise a deputy project director and an adequate number of project managers, engineers, social safeguard specialists, environmental specialists and administrative staff with the experience and motivation necessary for successful implementation of each project. A team comprising four representatives from ADB will work closely with PMO to assist PMO with expeditious completion of the project in accordance with the provisions set forth in the legal agreements for individual tranches. 24. International firms with national counterpart were engaged as consultants with the responsibility for construction supervision of Tranche 1 and 2, feasibility study and detailed designing of future subprojects. Contract modalities will include civil works and procurement of goods; hence the consultant s role will be to manage contracts with MPW and the PMO. Other consultants, both international and national, whether through a firm or as individuals, have been recruited under Tranche 1 and 2 for assisting institutional reform and restructuring of MPW. 25. Similarly, international firms with national counterpart will be engaged as consultants with the responsibility for construction supervision of Tranches 3 and 4. Contract modalities will include civil works and procurement of goods; hence the consultant s role will be to manage contracts with MPW and the PMO. Other consultants, both international and national, whether through a firm or as individuals, will be recruited for assisting institutional development and capacity building, contingent upon the developments from the Tranche 1 assistance. 19

20 MFF Organization Chart MPW (EA) Advisory Committee ADB Steering Committee Project Management Office (Director) Consultant(s) Contractor(s) ADB - Asian Development Bank, EA - Executing Agency, MPW - Ministry of Public Works, PMO - Project Management Office 2. Organizational Structure of Project Management Office 26. MPW has established a PMO to implement the investment program and appointed a PMO project director and key staff (procurement, engineering, financial management, and accounting). MPW will ensure that, during the entire period of the investment program implementation, a team of staff on procurement, engineering, financial management, accounting, program monitoring and evaluation, legal, administrative, and secretarial staff remains in place. In addition, procurement, environment safeguards, and social safeguards specialists are also engaged to support the work of the PMO as appropriate by the signing of grant agreement and the transport network management capacity development component. PMO is also be equipped with the necessary office space, equipment, and facilities. 20

21 Figure 3.1: MPW PMO Organization Structure MPW PMO Director PMO Team: Engineering Procurement Financial Management Planning and Economics Accountant Results Monitoring Legal Office Manager Interpreter Admin Support Legal and Procurement Specialists Safeguards Team Project Appraisal Team Construction Supervision Consultants Civil Works Contractors Transport Network Management Capacity Development Consultants MPW = Ministry of Public Works; PMO = Project Management Office. 21

22 IV. COSTS AND FINANCING 27. The total cost of the investment program was originally estimated at $805 million equivalent including taxes and duties, physical and price contingencies, and other charges. Of this, up to a maximum of $787 million was available for financing under the MFF and the remaining was to be government contribution. The updated summary of cost estimates for the investment program is presented in Table 4.1. Item Table 4.1: Cost Estimate for the Investment Program ($ million) Tranche Total Cost Component 1: Transport Infrastructure Civil Works for Road and Rail Construction Supervision Consulting Services Hairatan to Mazar-e-Sharif Railway Project Land Acquisition and Resettlement Component 2: Transport Network Management Capacity Development Transport Network Management Support - Consulting Services Transport Network Management Support - Goods Taxes and Duties Total Base Cost Contingencies Total Cost Source: Asian Development Bank estimates. 28. The maximum financing amount available under the Facility is an estimated $787 million, comprising of $667,000 from ADB s Special Funds resources (i.e., from the ADF). Financing will be provided in individual tranches. Other funding through cofinancing may be applied, such as funding from ADB s managed Afghan Infrastructure Trust Fund (AITF). Any contributions to the investment program from the AITF will reduce by the amount of such contributions, the amounts to be financed by ADB. Cofinancing from other sources will be managed contingent on the source and the nature of the co-financing In respect of other activities funded under the investment program, to facilitate timely and efficient implementation, to facilitate timely and efficient implementation, ADB will finance taxes and duties including business receipts tax (BRT) payable on ADB and AITF financed expenditures. Under tranche 4, which is receiving grant cofinancing from the European Union (EU), EU will finance taxes and duties including business BRT payable on EU financed expenditures, where applicable Table 4.2 presents ADB s estimated share in financing by expenditure category. 4 Estimated at approximately $17 million equivalent or approximately 2% of investment program costs, BRT costs do not represent an excessive share of the financing plan and are within applicable CPS parameters. See OM H3/BP and ADB Innovation and Efficiency Initiative, Cost Sharing and Eligibility of Expenditures for Asian Development Bank Financing: A New Approach. Manila. 22

23 Table 4.2: ADB Financing by Expenditure Category ($ million) Tranche ADB Expenditure Category Total Cost Civil Works for Road and Rail Goods Consultant Services Resettlement Taxes and Duties Unallocated Total Cost ADB = Asian Development Bank. Source: Asian Development Bank estimates. A. Allocation and Withdrawal of Grant Proceeds 30. Table 4.3A shows allocation and withdrawal of funds under all the categories for project 1 scope and Table 4.3B for use of the AITF allocations from project 2, both of which were collectively financed under Tranche 1. Table 4.3A: Allocation and Withdrawal of ADF Grant Proceeds Tranche 1, Project 1 Category Total Amount Allocated for ADB Financing Number Item (US Dollars) Category Subcategory 1 Civil Works 134,900,000 ADB Financing Basis Percentage of ADB Financing from the Grant Account 1A Bagramy to Sapary Road 32,700, % of total expenditure claimed 1B Jabul Saraj to Nijrab Road 26,650, % of total expenditure claimed 1C Faizabad to Baharak Road 65,550, % of total expenditure claimed 1D Railway Subproject 10,000, % of total expenditure claimed* 2 Resettlement 4,650,000 2A Bagramy to Sapary Road 1,550, % of total expenditure claimed 2B Jabul Saraj to Nijrab Road 1,550, % of total expenditure claimed 2C Faizabad to Baharak Road 1,550, % of total expenditure claimed 3 Consulting Services 14,450,000 3A Bagramy to Sapary Road 4,650, % of total expenditure claimed 3B Jabul Saraj to Nijrab Road 2,600, % of total expenditure claimed 3C Faizabad to Baharak Road 4,100, % of total expenditure claimed 3D Railway Subproject 2,000, % of total expenditure claimed* 3E Institutional Development and Strengthening 3,100, % of total expenditure claimed 4 Goods Railway Subproject 5,000, % of total expenditure claimed* 4 Unallocated 28,000,000 Total 189,000,000 AITF = Afghanistan Infrastructure Trust Fund; ADB = Asian Development Bank. * Exclusive of taxes and duties imposed without limitation Business Receipt Tax, Sukook tax, and other value-added tax (VAT) or Gross Sales Tax (GST) type taxes or duties imposed within the territory of the Recipient. 23

24 Table 4.3B: Allocation and Withdrawal of AITF Grant Proceeds Tranche 1, Project 2 Category Total Amount Allocated for ADB Financing Number Item (US Dollars) Category Subcategory 1 Operations and Maintenance Support Railway Subproject 2 Works Bagramy to Sapary Road Subproject ADB Financing Basis Percentage of ADB Financing from the AITF Account 13,000, % of total expenditure claimed* 19,000, % of total expenditure claimed 3 Miscellaneous 1,000, % of total expenditure claimed** Total 33,000,000 AITF = Afghan Infrastructure Trust Fund; ADB = Asian Development Bank. * Exclusive of taxes and duties imposed without limitation Business Receipt Tax, Sukook tax, and other valueadded tax (VAT) or Gross Sales Tax (GST) type taxes or duties imposed within the territory of the Recipient. ** To be utilized for the purposes of administration charges payable to, or disbursements incurred by, ADB for administration of the Grant under Section 2.01 of this Grant Agreement. 31. Table 4.3C shows allocation and withdrawal of ADF funds under all the categories, while Table 4.3D shows allocation and withdrawal of AITF allocations, for collectively financing the subprojects under Tranche 2. Table 4.3C: Allocation and Withdrawal of ADF Grant Proceeds Tranche 2 Category Total Amount Allocated for ADB Financing Number Item (US Dollars) Category Subcategory 1 Civil Works 115,300,000 1A Sapary to Jalalabad Road 1B Chah-e-Anjir to Gereshk Road 1C Sharan to Angoor-Ada Road 2 Consulting Services 19,700,000 ADB Financing Basis Percentage of ADB Financing from the Grant Account 24,100, % of total expenditure claimed* 37,100, % of total expenditure claimed* 54,100, % of total expenditure claimed* 2A Sapary to Jalalabad Road 6,200, % of total expenditure claimed 2B Chah-e-Anjir to Gereshk 5,100, % of total expenditure claimed Road 2C Sharan to Angoor-Ada 4,200, % of total expenditure claimed Road 2D PMO Support 2,100, % of total expenditure claimed 2E Bamyan-Kandahar Study 2,100, % of total expenditure claimed 3 Resettlement Costs 12,500, % of total expenditure claimed 4 Goods Asset 1,000, % of total expenditure claimed Management System 5 Unallocated 500,000 Total 149,000,000 AITF = Afghanistan Infrastructure Trust Fund; ADB = Asian Development Bank. * Financing allocated to this item under the AITF Grant Agreement will be utilized first at 100% of every claim until it has been disbursed in full. Thereafter, financing allocated to this item under the Special Operations Grant Agreement will be utilized at 100% of every claim. 24

25 Table 4.3D: Allocation and Withdrawal of AITF Grant Proceeds Tranche 2 ADB Financing Basis Percentage of ADB Financing from the AITF Account 77,000, % of total expenditure claimed* 10,000, % of total expenditure claimed* Total 87,000,000 AITF = Afghanistan Infrastructure Trust Fund; ADB = Asian Development Bank. * Financing allocated to this item under the AITF Grant Agreement will be utilized first at 100% of every claim until it has been disbursed in full. Thereafter, financing allocated to this item under the Special Operations Grant Agreement will be utilized at 100% of every claim. 32. Table 4.3E shows allocation and withdrawal of ADF funds under all the categories, while for financing the subprojects under Tranche 3. Table 4.3E: Allocation and Withdrawal of ADF Grant Proceeds Tranche 3 Category Total Amount Allocated for ADB Financing Number Item (US Dollars) Category Subcategory 1 Civil Works 205,000,000 1A Dar-i-Suf to Yakawlang Road 2 Consulting Services 14,500,000 ADB Financing Basis Percentage of ADB Financing from the Grant Account 205,000, % of total expenditure claimed 2A Dar-i-Suf to Yakawlang 9,250, % of total expenditure claimed Road 2B PMO Support 1,050, % of total expenditure claimed Category Total Amount Allocated for ADB Financing Number Item (US Dollars) Category Subcategory 1 Civil Works - Sapary to Jalalabad Road 2 Civil Works Chah-e- Anjir to Gereshk Road 2C Gardandewal- 2,100, % of total expenditure claimed Chaghcharan Study 2D Kabul Ring Road Study 2,100, % of total expenditure claimed 3 Resettlement Costs 500, % of total expenditure claimed Total 220,000,000 ADB = Asian Development Bank. 33. Table 4.3F shows allocation and withdrawal of ADF funds under all the categories, while for financing the subprojects under Tranche 4. Table 4.3G shows allocation and withdrawal of EU allocations, for collectively financing the subprojects under Tranche 4. Table 4.3F: Allocation and Withdrawal of ADF Grant Proceeds Tranche 4 Category Total Amount Allocated for ADB Financing Number Item (US Dollars) Category Subcategory 1 Civil Works (Baharak to Eshkashim Road) ADB Financing Basis Percentage of ADB Financing from the Grant Account 94,200, % of total expenditure claimed 25

26 Category Total Amount Allocated for ADB Financing Number Item (US Dollars) Category Subcategory 2 Consulting Services 8,800,000 ADB Financing Basis Percentage of ADB Financing from the Grant Account 2A Construction Supervision 7,700, % of total expenditure claimed (Baharak to Eshkashim Road) 2B PMO Support 1,100, % of total expenditure claimed 3 Resettlement Costs 500, % of total expenditure claimed 4 Unallocated 5,500, % of total expenditure claimed Total 109,000,000 ADB = Asian Development Bank. Table 4.3G: Allocation and Withdrawal of EU Grant Proceeds* Tranche 4 Category Total Amount Allocated for EU Financing Number Item (US Dollars) Category Subcategory 1 Goods (BCP Equipment for CAREC Corridors 5 & 6) 2 Consulting Services 15,400,000 2A AfRA Capacity Development 2B Pilot O&M Study for CAREC Corridors 5 & 6 2C Support for CAREC Corridors 5 & 6 EU Financing Basis Percentage of EU Financing 5,100, % of total expenditure claimed 8,700, % of total expenditure claimed 4,100, % of total expenditure claimed 2,600, % of total expenditure claimed 3 Unallocated 500,000** 500, % of total expenditure claimed Total 21,000,000 EU = European Union * Administered by the Asian Development Bank. ** This amount includes ADB s administration fee, audit cost, bank charges, and provision for foreign exchange fluctuations (if any), to the extent that these items are not covered by the interest and investment income earned on this grant, or any additional grant contribution by EU. B. Cost Estimates for Tranches 1, 2, 3 and For Tranche 1, ADB financed $189 million and covered the costs for Project 1: (i) three civil works packages, (ii) three consulting services contracts (construction supervision), and (iii) initial consulting services for transport network management capacity development. A grant coursed through the Afghanistan Infrastructure Trust Fund (AITF) was used to fund Project 2: (iii) additional financing for operations and maintenance, civil works, and consulting services on the Hairatan to Mazar-e-Sharif Railway Project. The Government of Afghanistan financed land acquisition, while ADB will finance any associated resettlement costs. ADB will finance taxes and duties on ADB and AITF-financed expenditure, with the exception of the additional financing to the Hairatan to Mazar-e-Sharif Railway Project. Taxes and duties incurred on EU-financed expenditures will be paid from the EU grant proceeds. As such, costs presented for items are thus gross-tax-inclusive. 26

27 Table 4.4: Detailed Cost Estimates by Expenditure Category Tranche 1 a, b, c ($ millions) Foreign Exchange Local Currency Total Cost % of Total Base Cost Item A. Base Cost 1. Civil Works for Roads % A. Bagramy Sapary (50 km) % B. Jabul Saraj Nijrab (51 km) % C. Faizabad Baharak (44 km) % 2. Construction Supervision Consulting Services % A. Bagramy Sapary (50 km) % B. Jabul Saraj Nijrab (51 km) % C. Faizabad Baharak (44 km) % 3. Land Acquisition and Resettlement % A. Land Acquisition % B. Resettlement % 4. Transport Network Management Support % 5. Hairatan to Mazar-e-Sharif Railway Project % Subtotal (A) % B. Contingencies 1. Physical % 2. Price % Subtotal (B) % C. Total Project Cost (A+B) % km = kilometer. In mid-2011 prices. b Physical and price contingencies are estimated at 7.5% each of the total base cost, for a total contingency of 15%. c Any taxes and duties incurred from the additional works and services to the Hairatan to Mazar-e-Sharif Railway Project will be the responsibility of the Government through their previous contribution commitments under G0161- AFG. Source: Asian Development Bank estimates. 27

28 Table 4.5: Detailed Cost Estimates by Financiers Tranche 1 a, b, c ($ million) Item ADB (ADF Grant) AITF d GoA % of Cost % of Cost % of Cost Amount Category Amount Category Amount Category A. Investment Costs 1. Civil Works for Roads % % % A. Bagramy Sapary (50 km) % % % 51.7 B. Jabul Saraj Nijrab (51 km) % % % 26.7 C. Faizabad Baharak (44 km) % % % Construction Supervision Consulting Services % % % 11.4 A. Bagramy Sapary (50 km) % % % 4.7 B. Jabul Saraj Nijrab (51 km) % % % 2.6 C. Faizabad Baharak (44 km) % % % Land Acquisition and Resettlement % % % 14.7 A. Land Acquisition % % % 10.0 B. Resettlement % % % Transport Network Management Support % % % Hairatan to Mazar-e-Sharif Railway Project % % % 30.0 Subtotal (A) % % % B. Contingencies 1. Physical % % % Price % % % 14.5 Subtotal (B) % % % 29.0 C. Total Project Cost (A+B) % % % Total Cost % Total Project Cost 81.5% 14.2% 4.3% 100.0% ADB = Asian Development Bank, ADF = Asian Development Fund, AITF = Afghanistan Infrastructure Trust Fund, GoA = Government of Afghanistan, km = kilometer. a In mid-2011 prices. b Physical and price contingencies are estimated at 7.5% each of the total base cost, for a total contingency of 15%. c Any taxes and duties incurred from the additional works and services to the Hairatan to Mazar-e-Sharif Railway Project will be the responsibility of the Government through their previous contribution commitments under G0161-AFG. d Financing partners: the governments of Japan, the United Kingdom, and the United States. Administered by the Asian Development Bank. Source: Asian Development Bank estimates. 28

29 Table 4.6: Estimated Cost Estimates by Component Tranche 1 a, b, c ($ million) Item Component 1: Transport Infrastructure Total Cost Amount % of Cost Category Component 2: Transport Network Management Capacity Development Amount % of Cost Category A. Investment Costs 1. Civil Works for Roads % % A. Bagramy Sapary (50 km) % % B. Jabul Saraj Nijrab (51 km) % % C. Faizabad Baharak (44 km) % % 2. Construction Supervision Consulting Services % % A. Bagramy Sapary (50 km) % % B. Jabul Saraj Nijrab (51 km) % % C. Faizabad Baharak (44 km) % % 3. Land Acquisition and Resettlement % % A. Land Acquisition % % B. Resettlement % % 4. Transport Network Management Support % % 5. Hairatan to Mazar-e-Sharif Railway Project % % Subtotal (A) % % B. Contingencies 1. Physical % % 2. Price % % Subtotal (B) % % C. Total Project Cost (A+B) % % km = kilometer. a In mid-2011 prices. b Physical and price contingencies are estimated at 7.5 each of the total base cost, for a total contingency of 15. c Any taxes and duties incurred from the additional works and services to the Hairatan to Mazar-e-Sharif Railway Project will be the responsibility of the Government through their previous contribution commitments under G0161-AFG. Source: Asian Development Bank estimates. 29

30 Table 4.7: Detailed Cost Estimates by Year Tranche 1 a, b, c ($ million) Item Total Cost Year 1 Year 2 Year 3 Year 4 A. Investment Costs 1. Civil Works for Roads A. Bagramy Sapary (50 km) B. Jabul Saraj Nijrab (51 km) C. Faizabad Baharak (44 km) Construction Supervision Consulting Services A. Bagramy Sapary (50 km) B. Jabul Saraj Nijrab (51 km) C. Faizabad Baharak (44 km) Land Acquisition and Resettlement A. Land Acquisition B. Resettlement Transport Network Management Support Hairatan to Mazar-e-Sharif Railway Project Subtotal (A) Total Base Cost B. Contingencies Total Project Cost (A+B) % Total Project Cost 100.0% 15.78% 41.50% 17.18% 3.16% a In mid-2011 prices. b Physical and price contingencies are estimated at 7.5 each of the total base cost, for a total contingency of 15. c Any taxes and duties incurred from the additional works and services to the Hairatan to Mazar-e-Sharif Railway Project will be the responsibility of the Government through their previous contribution commitments under G0161-AFG. Source: Asian Development Bank estimates. 35. For Tranche 2, ADB financed $236 million and covered the costs for: (i) three civil works packages, (ii) three consulting services contracts (construction supervision), (iii) additional consulting services for transport network management capacity development, and (iv) goods, namely an asset management system. A grant coursed through the Afghan Infrastructure Trust Fund (AITF) was used to cover a portion of the civil works package for the Sapary Jalalabad Road. The Government of Afghanistan financed the land acquisition and resettlement costs. As per the facility agreement, ADB financing covered any taxes and duties. As such, costs presented for items are thus gross tax inclusive. 5 5 As per the originally signed grant agreements, the initial share of Tranche 2 costs was financed by a $176 million ADF grant (G0327-AFG) and a $60 million AITF grant (G0328-AFG). In early 2013, an additional $27 million of AITF financing became available. At the request of the government, and subsequent approval of ADB, $27 million of the ADF grant was cancelled, while the AITF grant was increased by $27 million. Overall cost estimates of the tranche remain unchanged. Table 4.9 has been updated to reflect this change in costs by financiers. 30

31 Table 4.8: Detailed Cost Estimates by Expenditure Category Tranche 2 ($ millions) a, b Foreign Exchange Local Currency Total Cost % of Total Base Cost Item A. Base Cost 1. Civil Works for Roads % A. Sapary-Jalalabad (106 km) % B. Chah-e-Anjir-Gereshk (32 km) % C. Sharan-Angoor-Ada (50 km) % 2. Construction Supervision Consulting Services % A. Sapary-Jalalabad (106 km) % B. Chah-e-Anjir-Gereshk (32 km) % C. Sharan-Angoor-Ada (50 km) % 3. Land Acquisition and Resettlement % A. Land Acquisition % B. Resettlement % 4. Transport Network Management Support % A. PMO Support % B. Bamyan-Kandahar Study % C. Asset Management System % Subtotal (A) % B. Contingencies 1. Physical % 2. Price % Subtotal (B) % C. Total Project Cost (A+B) % km = kilometer. a In mid-2012 prices. b Physical and price contingencies are estimated at approximately 3.2% of the total base cost. Source: Asian Development Bank estimates. 31

32 Table 4.9: Detailed Cost Estimates by Financiers Tranche 2 a, b, c ($ million) Item ADB (ADF Grant) AITF d GoA % of Cost % of Cost % of Cost Amount Category Amount Category Amount Category A. Investment Costs 1. Civil Works for Roads % % % A. Sapary-Jalalabad (106 km) % % % B. Chah-e-Anjir-Gereshk (32 km) % % % 47.1 C. Sharan-Angoor-Ada (50 km) % % % Construction Supervision Consulting Services % % % 15.5 A. Sapary-Jalalabad (106 km) % % % 6.2 B. Chah-e-Anjir-Gereshk (32 km) % % % 5.1 C. Sharan-Angoor-Ada (50 km) % % % Land Acquisition and Resettlement % % % 24.0 A. Land Acquisition % % % 11.5 B. Resettlement % % % Transport Network Management Support % % % 5.2 A. PMO Support % % % 2.1 B. Bamyan-Kandahar Study % % % 2.1 C. Asset Management System % % % 1.0 Subtotal (A) % % % B. Contingencies 1. Physical % % % Price % % % 2.5 Subtotal (B) % % % 8.0 C. Total Project Cost (A+B) % % % % Total Project Cost 58.4% 34.1% 7.5% 100.0% ADB = Asian Development Bank, ADF = Asian Development Fund, AITF = Afghanistan Infrastructure Trust Fund, GoA = Government of Afghanistan, km = kilometer. a In mid-2012 prices. b Physical and price contingencies are estimated at approximately 3.2% of the total base cost. c As per the Grant Agreements and the associated allocation and withdrawal tables, cofinancing allocated to particular items under the AITF Grant Agreement will be utilized first at 100% of every claim until it has been disbursed in full. Thereafter, financing allocated to these items under the Special Operations Grant Agreement will be utilized at 100% of every claim. d Financing partners: the governments of Japan, the United Kingdom, and the United States. Administered by the Asian Development Bank. 32 Total Cost

33 Item Table 4.10: Estimated Cost Estimates by Component Tranche 2 ($ million) a, b Component 1: Transport Infrastructure Total Cost Amount % of Cost Category Component 2: Transport Network Management Capacity Development Amount % of Cost Category A. Investment Costs 1. Civil Works for Roads % % A. Sapary-Jalalabad (106 km) % % B. Chah-e-Anjir-Gereshk (32 km) % % C. Sharan-Angoor-Ada (50 km) % % 2. Construction Supervision Consulting Services % % A. Sapary-Jalalabad (106 km) % % B. Chah-e-Anjir-Gereshk (32 km) % % C. Sharan-Angoor-Ada (50 km) % % 3. Land Acquisition and Resettlement % % A. Land Acquisition % % B. Resettlement % % 4. Transport Network Management Support % % A. PMO Support % % B. Bamyan-Kandahar Study % % C. Asset Management System % % Subtotal (A) % % B. Contingencies 1. Physical % % 2. Price % % Subtotal (B) % % C. Total Project Cost (A+B) % % km = kilometer. a In mid-2012 prices. b Physical and price contingencies are estimated at approximately 2.3% of the total base cost. Source: Asian Development Bank estimates. 33

34 Table 4.11: Detailed Cost Estimates by Year Tranche 2 ($ million) a, b Item Total Cost Year 1 Year 2 Year 3 Year 4 A. Investment Costs 1. Civil Works for Roads A. Sapary-Jalalabad (106 km) B. Chah-e-Anjir-Gereshk (32 km) C. Sharan-Angoor-Ada (50 km) Construction Supervision Consulting Services A. Sapary-Jalalabad (106 km) B. Chah-e-Anjir-Gereshk (32 km) C. Sharan-Angoor-Ada (50 km) Land Acquisition and Resettlement A. Land Acquisition B. Resettlement Transport Network Management Support A. PMO Support B. Bamyan-Kandahar Study C. Asset Management System Subtotal (A) Total Base Cost B. Contingencies Total Project Cost (A+B) % Total Project Cost 100.0% 24.29% 52.00% 19.28% 4.43% a In mid-2012 prices. b Physical and price contingencies are estimated at approximately 3.2% of the total base cost. Source: Asian Development Bank estimates. 36. For Tranche 3, ADB financed $220 million and cover the costs for: (i) the civil works package, (ii) three consulting services contracts (project management and supervision consultant and consultancy services for pre-feasibility studies), (iii) additional support to the PMO, and (iv) resettlement costs. The Government of Afghanistan will finance the land acquisition costs. As per the facility agreement, ADB financing will cover any taxes and duties. As such, costs presented for items are thus gross tax inclusive. 34

35 Table 4.12: Detailed Cost Estimates by Expenditure Category Tranche 3 ($ millions) a, b Foreign Exchange Local Currency Total Cost % of Total Base Cost Item A. Base Cost 1. Civil Works for Roads % A. Dar-i-Suf-Yakawlang (178 km) % 2. Construction Supervision Consulting Services % A. Dar-i-Suf-Yakawlang (178 km) % 3. Land Acquisition and Resettlement % A. Land Acquisition % B. Resettlement % 4. Transport Network Management Support % A. PMO Support % B. Gardandewal-Chaghcharan Study % C. Kabul Ring Road Study % Subtotal (A) % B. Contingencies 1. Physical % 2. Price % Subtotal (B) % C. Total Project Cost (A+B) % km = kilometer. a In mid-2013 prices. b Physical and price contingencies for works are estimated at approximately 3.4% of the total base cost. Price contingencies calculated following ADB price escalation factors and include provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. Prior to the contingency on the total base cost, all packages for civil works or consultancy services already contain a 15% to 20% contingency depending on the nature of the work. Source: Asian Development Bank estimates. 35

36 Table 4.13: Detailed Cost Estimates by Financiers Tranche 3 ($ million) a, b Item ADB (ADF Grant) GoA % of Cost Amount Category Amount % of Cost Category A. Investment Costs 1. Civil Works for Roads % A. Dar-i-Suf-Yakawlang (178 km) % Construction Supervision Consulting Services % A. Dar-i-Suf-Yakawlang (178 km) % Land Acquisition and Resettlement % A. Land Acquisition % B. Resettlement % Transport Network Management Support % A. PMO Support % B. Gardandewal-Chaghcharan Study % C. Kabul Ring Road Study % Subtotal (A) % B. Contingencies 1. Physical % Price % Subtotal (B) % C. Total Project Cost (A+B) % Total Cost % Total Project Cost 95.7% % ADB = Asian Development Bank, ADF = Asian Development Fund, GoA = Government of Afghanistan, km = kilometer. a In mid-2013 prices. b Physical and price contingencies for works are estimated at approximately 3.4% of the total base cost. Price contingencies calculated following ADB price escalation factors and include provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. Prior to the contingency on the total base cost, all packages for civil works or consultancy services already contain a 15% to 20% contingency depending on the nature of the work. 36

37 Item Table 4.14: Estimated Cost Estimates by Component Tranche 3 ($ million) a, b Component 1: Transport Infrastructure Total Cost Amount % of Cost Category Component 2: Transport Network Management Capacity Development Amount % of Cost Category A. Investment Costs 1. Civil Works for Roads % % A. Dar-i-Suf-Yakawlang (178 km) % % 2. Construction Supervision Consulting Services % % A. Dar-i-Suf-Yakawlang (178 km) % % 3. Land Acquisition and Resettlement % % A. Land Acquisition % % B. Resettlement % % 4. Transport Network Management Support % % A. PMO Support % % B. Gardandewal-Chaghcharan Study % % C. Kabul Ring Road Study % % Subtotal (A) % % B. Contingencies 1. Physical % % 2. Price % % Subtotal (B) % % C. Total Project Cost (A+B) % % km = kilometer. a In mid-2013 prices. b Physical and price contingencies for works are estimated at approximately 3.4% of the total base cost. Price contingencies calculated following ADB price escalation factors and include provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. Prior to the contingency on the total base cost, all packages for civil works or consultancy services already contain a 15% to 20% contingency depending on the nature of the work. Source: Asian Development Bank estimates. 37

38 Table 4.15: Detailed Cost Estimates by Year Tranche 3 ($ million) a, b Item Total Cost Year 1 Year 2 Year 3 Year 4 A. Investment Costs 1. Civil Works for Roads A. Dar-i-Suf-Yakawlang (178 km) Construction Supervision Consulting Services A. Dar-i-Suf-Yakawlang (178 km) Land Acquisition and Resettlement A. Land Acquisition B. Resettlement Transport Network Management Support A. PMO Support B. Gardendewal-Chaghcharan Study C. Kabul Ring Road Study Subtotal (A) Total Base Cost B. Contingencies Total Project Cost (A+B) % Total Project Cost 100.0% 14.60% 49.98% 25.57% 9.86% a In mid-2013 prices. b Physical and price contingencies for works are estimated at approximately 3.4% of the total base cost. Price contingencies calculated following ADB price escalation factors and include provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. Prior to the contingency on the total base cost, all packages for civil works or consultancy services already contain a 15% to 20% contingency depending on the nature of the work. Source: Asian Development Bank estimates. 37. For Tranche 4, ADB financed $109 million and covered the costs for: (i) the Baharak- Eshkashim civil works package; (ii) Baharak-Eshkashim project management and supervision consultant. Draft ToRs for the project management and construction supervision consultant are presented in Attachment 6); (iii) additional support to the PMO; and (iv) resettlement costs. The EU co-financed $21 million for: (i) Support to CAREC Corridors 5 & 6, including (a) an O&M pilot and best practices support on Corridors 5 & 6 (the concept paper is presented in Attachment 7), (b) studies on corridor performance measurement and monitoring, cross-border transport agreements, and analysis of border crossing point bottlenecks, (c) provision of border crossing point and road monitoring equipment; and (ii) Support to the Afghanistan Railway Authority. The indicative three-year technical assistance and capacity development plan for AfRA is presented in Attachment The Government of Afghanistan will finance the land acquisition costs. ADB will finance taxes and duties on expenditure financed by ADB grant proceeds, and EU will finance taxes and duties on expenditure financed by EU grant proceeds. As such, costs presented for items are thus gross tax inclusive. 6 Attachment 8 gives an indication of the expertise that is needed to strengthen AfRA capacity. Detailed consultant ToRs will be developed based on the aforementioned plan 38

39 Table 4.16: Detailed Cost Estimates by Expenditure Category Tranche 4 ($ millions) a, b Item Foreign Exchange Local Currency Total Cost % of Total Base Cost A. Base Cost 1. Civil Works for Roads % A. Baharak-Eshkashim (108 km) % 2. Construction Supervision Consulting Services % A. Baharak-Eshkashim (108 km) % 3. Land Acquisition and Resettlement % A. Land Acquisition % B. Resettlement % 4. Transport Network Management Support % A. PMO Support % B. Support to AfRA % C. Support to CAREC Corridors 5 and % a. Goods for CAREC Corridors 5 & % b. Pilot O&M for CAREC Corridors 5 & % c. Studies for CAREC Corridors 5 & % Subtotal (A) % B. Contingencies 1. Physical % 2. Price c % Subtotal (B) % C. Total Project Cost (A+B) % km = kilometer a In mid-2014 prices. b Physical and price contingencies are estimated at approximately 10% of the total base cost. Price contingencies calculated following ADB price escalation factors and include provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. c This amount includes ADB s administration fee, audit cost, bank charges, and provision for foreign exchange fluctuations (if any), to the extent that these items are not covered by the interest and investment income earned on this grant, or any additional grant contribution by EU. Source: Asian Development Bank estimates. 39

40 Table 4.17: Detailed Cost Estimates by Financiers Tranche 4 ($ million) a, b Item ADB (ADF Grant) EU d GoA Amount % of Cost Category Amount % of Cost Category Amount % of Cost Category A. Investment Costs 1. Civil Works for Roads % % % 94.2 A. Baharak-Eshkashim (108 km) % % % Construction Supervision Consulting Services % % % 7.7 A. Baharak-Eshkashim (108 km) % % % Land Acquisition and Resettlement % % % 9.0 A. Land Acquisition % % % 8.5 B. Resettlement % % % Transport Network Management Support % % % 21.6 A. PMO Support % % % 1.1 B. Support to AfRA % % % 8.7 C. Support to CAREC Corridors 5 and % % % 11.8 a. Goods for CAREC Corridors 5 & % % % 5.1 b. Pilot O&M for CAREC Corridors 5 & % % % 4.1 c. Studies for CAREC Corridors 5 & % % % 2.6 Subtotal (A) % % % B. Contingencies 1. Physical % % % Price % 0.5 c 8.3% % 6.0 Subtotal (B) % % % 13.5 C. Total Project Cost (A+B) % % % ADB = Asian Development Bank, ADF = Asian Development Fund, EU = European Union, GoA = Government of Afghanistan, km = kilometer. a In mid-2014 prices. b Physical and price contingencies for works are estimated at approximately 10% of the total base cost. Price contingencies calculated following ADB price escalation factors and include provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. c This amount includes ADB s administration fee, audit cost, bank charges, and provision for foreign exchange fluctuations (if any), to the extent that these items are not covered by the interest and investment income earned on this grant, or any additional grant contribution by EU. d Administered by the Asian Development Bank. Source: Asian Development Bank estimates. Total Cost 40

41 Item Table 4.18: Estimated Cost Estimates by Component Tranche 4 ($ million) a, b Total Cost Component 1: Transport Infrastructure % of Cost Category Component 2: Transport Network Management Capacity Development % of Cost Amount Category Amount A. Investment Costs 1. Civil Works for Roads % % A. Baharak-Eshkashim (108 km) % % 2. Construction Supervision Consulting Services % % A. Baharak-Eshkashim (108 km) % % 3. Land Acquisition and Resettlement % % A. Land Acquisition % % B. Resettlement % % 4. Transport Network Management Support % % A. PMO Support % % B. Support to AfRA % % C. Support to CAREC Corridors 5 and % % a. Goods for CAREC Corridors 5 & % % b. Pilot O&M for CAREC Corridors 5 & % % c. Studies for CAREC Corridors 5 & % % Subtotal (A) % % B. Contingencies 1. Physical % % 2. Price % 0.5 c 8.3% Subtotal (B) % % C. Total Project Cost (A+B) % % km = kilometer. a In mid-2014 prices. b Physical and price contingencies are estimated at approximately 10% of the total base cost. Price contingencies calculated following ADB price escalation factors and include provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. c This amount includes ADB s administration fee, audit cost, bank charges, and provision for foreign exchange fluctuations (if any), to the extent that these items are not covered by the interest and investment income earned on this grant, or any additional grant contribution by EU. Source: Asian Development Bank estimates. 41

42 Table 4.19: Detailed Cost Estimates by Year Tranche 4 ($ million) a, b Item Total Cost Year 1 Year 2 Year 3 Year 4 A. Investment Costs 1. Civil Works for Roads A. Baharak-Eshkashim (108 km) Construction Supervision Consulting Services A. Baharak-Eshkashim (108 km) Land Acquisition and Resettlement A. Land Acquisition B. Resettlement Transport Network Management Support A. PMO Support B. Support to AfRA C. Support to CAREC Corridors 5 and a. Goods for CAREC Corridors 5 & b. Pilot O&M for CAREC Corridors 5 & c. Studies for CAREC Corridors 5 & Subtotal (A) Total Base Cost B. Contingencies c Total Project Cost (A+B) % Total Project Cost 100.0% 15.43% 51.54% 33.03% 0.00% km = kilometer a In mid-2014 prices. b Physical and price contingencies are estimated at approximately 10% of the total base cost. Price contingencies calculated following ADB price escalation factors and include provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. Prior to the contingency on the total base cost, all packages for civil works or consultancy services already contain a 15% to 20% contingency depending on the nature of the work. c This amount includes ADB s administration fee, audit cost, bank charges, and provision for foreign exchange fluctuations (if any), to the extent that these items are not covered by the interest and investment income earned on this grant, or any additional grant contribution by EU. Source: Asian Development Bank estimates. 42

43 C. Contracts and Disbursements S-curve Figure 4.1: Tranche 1 Realized Contracts Awards and Disbursements S-Curve $ millions Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Time Contract Awards Disbursements Realized Contract Awards and Disbursements Contract Awards (in USD million) Disbursements (in USD million) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Total Total

44 G0261-AFG Realized Contract Awards and Disbursements Contract Awards (in USD million) Disbursements (in USD million) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Total Total G0262-AFG Realized Contract Awards and Disbursements Contract Awards (in USD million) Disbursements (in USD million) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Total Total

45 Figure 4.2: Tranche 2 Realized Contracts Awards and Disbursements S-Curve $ millions Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Time Contract Awards Disbursements Realized Contract Awards and Disbursements Contract Awards (in USD million) Disbursements (in USD million) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Total Total

46 G0327-AFG Realized Contract Awards and Disbursements Contract Awards (in USD million) Disbursements (in USD million) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Total Total G0328-AFG Realized Contract Awards and Disbursements Contract Awards (in USD million) Disbursements (in USD million) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Total Total

47 Figure 4.3: Tranche 3 Anticipated Contracts Awards and Disbursements S-Curve $ millions Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Time Contract Awards Disbursements Projected Contract Awards and Disbursements Contract Awards (in USD million) Disbursements (in USD million) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Total Total

48 Figure 4.4: Tranche 4 Anticipated Contracts Awards and Disbursements S-Curve $ millions Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Time Contract Awards Disbursements Projected Contract Awards and Disbursements Contract Awards (in USD million) Disbursements (in USD million) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Total Total

49 ADB Grant - Projected Contract Awards and Disbursements Contract Awards (in USD million) Disbursements (in USD million) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Total Total EU Grant Projected Contract Awards and Disbursements Contract Awards (in USD million) Disbursements (in USD million) Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Total Total

50 Fund Flow Diagram Figure 4.5: Fund Flow Diagram Recipient Ministry of Finance MoF WITHDRAWAL APPLICATION Asian Development Bank DIRECT PAYMENT Executing Agency Ministry of Public Works MPW Program Management Office PMO Imprest Account Contractors Consultants o Firms & Individuals o National & International INVOICES Cash Flow Paper Flow 50

51 V. FINANCIAL MANAGEMENT A. Updated Financial Management Assessment 38. Country Context: A performance assessment of the Public Financial Management (PFM) system of the Government was undertaken by the World Bank in This 2013 PEFA assessment portrays a public sector in which financial resources of the general government sector are, by and large, tracked and reported within a budget which is processed with transparency and has contributed to aggregate fiscal discipline. The expenditures and financial position of the GoA are reported regularly in an understandable format and Parliament reviews the fiscal reports of the executive. The table below compares the overall trajectory of the indicators from 2008 to the current assessment. Overall, there was a decline in five performance indicators (PIs), 10 indicators showed positive progress over the period between assessments and 11 are unchanged, while two indicators (PI7, PI15) were not rated in 2013 because there was insufficient information available to score one dimension under each indicator. 7 Table 5.1: Change in PEFA Indicators (2008 vs 2013) Indicator Group (Number of indicators) Lower Equivalent Higher Credibility of the budget 1-3 Comprehensive and transparency Policy-based budgeting Predictability and control in budget execution Accounting, recording and reporting External scrutiny and audit Total PFM Donor practices Agency Context: Based on USAID assessment in 2012, financial management systems in MPW exhibit high risk and low controls. For e.g. the Internal Audit unit in MPW is weak and focused on transactional audit. There is no risk assessment exercise performed for preparation of MPW s annual internal audit plan, nor is there any process level internal controls design assessment. Second, there is no documented manual of finance policies and procedures in MPW. The guidelines given by the MOF are policy level guidelines which are applicable to all the ministries, but no detailed procedure manual which should be specific to organizational structure and the nature of the work of MPW is there. 40. PMO Context: The financial management review of Ministry of Public Work (MPW) was conducted in October The review considered the MPW in its role as the proposed EA with the well-established PMO to implement the project. MPW with a well-established PMO have experience in implementing ADB s projects. PMO s finance unit overall has adequate staff with reasonable accounting knowledge and capacity to record financial transactions. Staff turnover has been low since MFF effectiveness. Audited project financial statements have been submitted timely and acceptable to ADB, and no adverse findings were reported. The reporting and monitoring system has been improved. However, the PMO also needs further training particular on ADB s financial management requirements to prepare financial reports and some areas are required to strengthen monitoring and internal control. Progress against the financial management action plan set out in the FAM at the time of MFF processing is given below. 7 World Bank Afghanistan Public Financial Management and Accountability Assessment. 51

52 Financial Management Action Plan Table 5.2: Status of Financial Management Action Plan PMO needs a business plan and associated organizational restructuring plans designed around current and expected transport sector responsibilities aligned with recent strategies and policy frameworks. PMO need offer incentives to the PMO staff in order to avoid frequent staff turnover and adverse impacts on implementation of the ongoing project and the investment program. Introduction of project allowance is one of the major actions needed to be taken urgently; PMO specialists and financial staff must undergo further trainings on ADB financial management procedures to further strengthen its capacity and enable the PMO to undertake an internal audit; A separate accounting policy and financial management manual for the existing PMO should be established in accordance with MOF and ADB requirements without any further delays; PMO should maintain separate accounts for each of the projects under the investment program and have such accounts audited annually, in accordance with appropriate auditing standards consistently applied by independent auditors whose qualifications, experience, and terms of reference (TOR) are acceptable to ADB; Internal audit arrangements should be established urgently to cover all operations of the PMO Compliance Status Ongoing. Procurement of capacity development consultant was delayed, and it only mobilized in This work is now ongoing in coordination with other development partners. Achieved. The staff turnover in PMO is very low. This has been realized not through an incentive or allowance, but through highly competitive salaries. Partially Achieved. There has been one training conducted for PMO staff on FM Procedures in 2012 Achieved. A separate accounting policy was established in January An FM manual is also developed. Achieved. An independent audit is conducted annually. The APFS have been submitted to ADB on time and found acceptable. Not yet achieved. An internal auditor has not yet been recruited. 41. Updated Risk Analysis: Inherent risk was assessed as substantial due to the variance to budget both in the aggregate revenue and expenditures to fiscal discipline, the inconsistent approach in monitoring arrears and financial reporting not full compliance with the International Public Sector Accounting Standards (IPSAS). 8 Control risk was rated as moderate due to (i) delays in recruitment of an internal auditor in the PMO, whose recruitment is now set to be finalized in January 2015, and (ii) low capacity of PMO staff in preparing financial reports. Table 5.3: Updated FM Risk Assessment and Mitigation Measures FM Risk FM Risk FM Risk Mitigation Measures Assessment* Inherent Risk Country-specific Risks S The Public Financial Management Reform Project II, financed by the World Bank, is providing support for strengthening PFM in Afghanistan through effective procurement, treasury and audit reforms and structures. Entity-specific Risks: S Development partners, notably USAID and DFID, are supporting capacity development efforts to strengthen financial 8 World Bank Afghanistan Public Financial Management and Accountability Assessment. 52

53 FM Risk FM Risk Assessment* FM Risk Mitigation Measures management in MPW. The capacity development consultant mobilized under Tranche 1 is conducting a trainings needs assessment, and a DFID-supported project is looking at strengthening the Training & Development function in MPW. Project-specific Risks M Project components are financed by ADB and EU grants which will ensure timely availability of funds to the project. PMO has capable FM staff familiar with ADB procedures, but there is still need for strengthening capacities in financial reporting. ADB RETA 8697 Improving the Financial Management Capacity of Executing Agencies in Afghanistan and Pakistan will help strengthen these capacities in PMO. Overall Inherent Risk Control Risk S Implementing Entity M This is tranche 4 of the MFF. The implementation arrangements have been tested and shall be further improved. Support for strengthening PMO capacities shall continue under tranche 4. FM capacities will be further strengthened under ADB RETA Funds Flow. M This is the fourth tranche, and MPW-PMO is familiar with funds flow arrangements for the investment program. ADB will continue its monitoring to ensure that these arrangements are followed. Staffing. M The PMO has capable staff and there is low turnover. The ADB RETA 8697 will further strengthen financial management of ADB-financed projects during project processing and implementation. Accounting Policies and Procedures M ADB RETA 8697 will develop country project financial management manuals for Afghanistan. If necessary, the FM manual of PMO will be updated accordingly. Internal Audit H Recruitment of internal auditor for PMO shall be finalized by January External Audit L An independent external audit firm shall continue to be contracted by PMO every year to audit project accounts in accordance with international standards. ADB RETA 8697 will develop sample ToRs of audit firms. Reporting and Monitoring Overall Control Risk * H High, S Substantial, M Moderate, N Negligible or Low. M M ADB RETA 8697 will provide training to PMO in preparing financial statements and reporting in line with ADB and government requirements. 42. Updated Prioritized Risk Mitigation Actions: The overall financial management risk for the project is derived from the underlying risks in the existing financial management systems of the EA and PMO. The following are the key risk mitigation actions that would reduce the project financial management risk: a. PMO specialists and financial staff must undergo further trainings on ADB financial management procedures to further strengthen its capacity and enable 53

54 the PMO to prepare its financial reports. b. The PMO will update the financial management manual in accordance with MOF and ADB requirements, with assistance from RETA c. MPW to expedite recruitment of the internal auditor. B. Disbursement 43. The Grant proceeds will be disbursed in accordance with ADB s Loan Disbursement Handbook (2012, as amended from time to time), and detailed arrangements agreed between the government and ADB Direct payment procedures will generally be used for civil works contracts and consulting services. Payment for individual consultants (national) may be made from an imprest account. Immediately after grant effectiveness for each tranche, the PMO will establish an imprest account at a commercial bank. 10,11 The maximum ceiling of the imprest accounts will be 10% of the ADF grant amount used to finance the respective tranche. The currency of the imprest accounts will be United States Dollars. The government may request for initial and additional advances to the imprest accounts based on 6 months estimated expenditures to be financed for each tranche through the imprest account. The imprest accounts are to be used exclusively for ADB s share of eligible expenditures. Imprest accounts will be established, managed, and liquidated in accordance with ADB s Loan Disbursement Handbook and detailed arrangements agreed by the Government and ADB. ADB s Loan Disbursement Handbook describes which supporting documents should be submitted to ADB and which should be retained by the government for liquidation and replenishment of an Imprest account. Under Tranches 1 and 2, no imprest accounts will be established for the respective AITF grants, only the ADF grants. Meanwhile, under Tranche 4, a separate imprest account will be established for the EU grant. 45. The statement of expenditure (SOE) procedure will be used to reimburse eligible expenditure and to liquidate and replenish the imprest account for individual payments of $100,000 equivalent and below. SOE records should be maintained and made readily available for review by ADB's disbursement and review mission or upon ADB's request for submission of supporting documents on a sampling basis, and for independent audit. 46. PMO will be responsible for (i) preparing disbursement projections, (ii) requesting budgetary allocations for counterpart funds, (iii) collecting supporting documents, and (iv) preparing and sending withdrawal applications to ADB. Before the submission of the first withdrawal application, the government shall submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the borrower, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is US$100,000 equivalent, unless otherwise approved by ADB. Individual payments below this amount should generally be paid from the imprest account or by the EA/IA and subsequently claimed to ADB through reimbursement. ADB reserves the right not to accept WAs below the minimum amount. 9 Available at: 10 The imprest account shall be opened at a commercial bank which meets the conditions provided in LDH Any bank charges will be financed from the grant, in line with OM H3 requirement. 54

55 C. Accounting 47. PMO will maintain separate project financial statements and records by funding source for all expenditures incurred on each project under the Investment Program. Project financial statements prepared by PMO annually will follow International Financial Reporting Standards. D. Auditing 48. PMO will cause the annual project financial statements for each tranche under the Investment Program to be audited in accordance with cash-based International Public Sector Accounting Standards (IPSAS). Such audited project financial statements, the audit report (which includes an opinion on whether the audited project financial statements presents fairly, in all material respects, the cash receipts and disbursements of the grant) and a management letter (which sets out the deficiencies in the internal control of the Project that were identified in the course of the audit, if any) will be submitted in the English language to ADB within 6 months of the end of the fiscal year by PMO. The annual audit report will also include an opinion on the use of the grant proceeds and compliance with the financial covenants of the Grant Agreements as well as on the use of the procedures for the imprest account and statement of expenditures. 49. The Government and PMO have been made award of ADB's policy on delayed submission, and the requirements for satisfactory and acceptable quality of the audited accounts. The ADB s Policy on delayed submission of audited project financial statements is summarized as follows: When audited project financial statements are not received by the due date, ADB will write to the executing agency advising that (i) the audit documents are overdue; and (ii) if they are not received within the next six months, requests for new contract awards and disbursement such as new replenishment of imprest accounts, processing of new reimbursement, and issuance of new commitment letters will not be processed. When audited project financial statements have not been received within 6 months after the due date, ADB will withhold processing of requests for new contract awards and disbursement such as new replenishment of imprest accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will (i) inform the executing agency of ADB s actions; and (ii) advise that the loan may be suspended if the audit documents are not received within the next six months. When audited project financial statements have not been received within 6 months after the due date, ADB will withhold processing of requests for new contract awards and disbursement such as new replenishment of imprest accounts, processing of new reimbursement, and issuance of new commitment letters. ADB will (i) inform the executing agency of ADB s actions; and (ii) advise that the loan may be suspended if the audit documents are not received within the next six months. 50. ADB reserves the right to verify the financial statements for each project under the Investment Program to confirm that the share of ADB's financing is used in accordance with ADB's policies and procedures. E. Public Disclosure of Audited Financial Statements 51. In respect of the project statements for Tranches 1, 2, 3, 4, and any subsequent tranches under the Investment Program, ADB will disclose the audited financial statement for such project and the auditors opinion on the financial statements within 30 days of the receipt by posting them on the ADB website. 55

56 VI. PROCUREMENT AND CONSULTING A. Advance Contracting and Retroactive Financing 52. Under each tranche, ADB may, subject to its policies and procedures, allow on request (a) advance contracting and (b) retroactive financing of eligible expenditures for up to 20% of the proposed individual grant, incurred prior to grant effectiveness but not earlier than 12 months before the date of signing of the related legal agreement. Afghanistan acknowledges that any approval of advance contracting and/or retroactive financing will not constitute a commitment by ADB to finance the related project. 53. All advance contracting and retroactive financing will be undertaken in conformity with ADB s Procurement Guidelines (2013, as amended from time to time) 12 and ADB s Guidelines on the Use of Consultants (2013, as amended from time to time). 13 The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB s prior review. The recipient, MOF and MPW have agreed that approval of advance contracting and retroactive financing does not commit ADB to finance the Project. 54. The government will follow ADB s policies, including ADB s Procurement Guidelines, the Guidelines on The Use of Consultants by ADB and its Borrowers (2013, as amended from time to time) and the Loan Disbursement Handbook (2012, as amended from time to time). The government has requested approval for advance contracting and retroactive financing in an amount not exceeding 20% of the aggregate of all of the Tranche 1, Project 1 grant amounts for eligible civil works, O&M and consulting services. Two of the road subprojects included in Tranche 1, Project 1 were originally intended for inclusion as part of the second tranche of the earlier Road Network Development Investment Program. However, following a change in strategic priorities, funds originally intended for these roads were reallocated to completing remaining sections of the Afghanistan Ring Road. As the government proceeded with advance actions in the expectation that the subprojects would proceed under the earlier MFF, the government has requested that ADB s approval of retroactive financing allow reimbursement of expenditures incurred up to 18 months before the signing date of the grant agreements for Tranche 1. Given these circumstances and as the advance actions have been undertaken in accordance with ADB requirements and facilitated project readiness, the request is considered justified. 55. The recipient, MOF and MPW has requested approval of advance contracting for procurement of civil works and construction supervision contract under Tranche 4. No retroactive financing was required for Tranche 2, 3, and 4. B. Procurement of Goods, Works and Consulting Services 56. MPW will undertake all procurement activities under the Facility in accordance with ADB s Guidelines on the Use of Consultants (2013, as amended from time to time) and ADB s Procurement Guidelines (2013, as amended from time to time), as applicable, under a procurement plan approved by ADB. The Procurement must include all procurement activities anticipated under the project. Procurement plan should be updated by MPW at most annually or as and when required depending on the project requirements. 12 Available at: 13 Available at: 56

57 57. The procurement plan for Tranches 1, 2, 3 and 4 are presented below. 14 To ensure competitive bidding, international competitive bidding (ICB) contract packages will be adopted. ICB will be used for civil works over $5 million and goods over $2 million. National competitive bidding (NCB) for civil works could be conducted for contracts not exceeding $5 million. Civil works contracts will be procured through ICB using post-qualification. ADB s prior review procedures will be followed. Shopping will be used for contracts for procurement of works and equipment worth less than $100,000. For Tranche 4, ADB is administering cofinancing resources in the form of a grant from the EU. Accordingly, universal procurement will apply to all procurement and consulting services packages to be financed under Tranche MPW PMO agree to include the relevant sections of ADB s Anticorruption Policy (1998) in all bidding and contractual documents. To ensure that procurement are carried out quickly and in accordance with ADB s procurement guidelines and approved bidding documents a full time procurement assistance will be provided by a long-term consultant stationed at AFRM under TA 8665-REG: Strengthening the capacity of Integrity and Procurement in Central and West Asia as a capacity development program. In addition, an international procurement expert was engaged under the Project Management Office to provide hands-on training and support in addressing procurement issues. The Project Procurement Risk Assessment was updated and the Project Procurement Risk Assessment and Management Plan (P-RAMP) prepared. These are presented in Attachment 5: Project Procurement Risk Assessment Report for Tranche ADB s standard bidding documents will be used for procuring infrastructure improvement works. They will, to the extent possible, contain performance criteria and security assurances that will increase the efficiency and timeliness of completion. In the case of design-build contract for works, depending on the level completion of designs at the procurement stage, bids will be called on the basis of standards, specifications, and estimated quantities. Bidding documents for maintenance works on existing roads will follow the World Bank s 16 or other international agencies documents for performance-based works, modified to ensure consistency with ADB s policies. For maintenance of rehabilitated infrastructure, similar bidding documents for performance-based contracts could be used. 59. All consultants will be recruited according to ADB s Guidelines on the Use of Consultants The procurement plan for Tranche 4 is generated from the PRS. 15 Accordingly: (a) ADB s grant financing for Tranche 4 may be used for procurement (i) in countries that are not developed member countries of ADB which have contributed to the resources of the Asian Development Fund or developing member countries of ADB; and (ii) of goods, works and services produced in such countries; and (b) EU s grant financing for Tranche 4 may be used for procurement (i) in non-member countries of ADB; and (ii) of goods, works and services produced in non-member countries of ADB. ADB Blanket Waiver of Member Country Procurement Eligibility Restrictions in Cases of Cofinancing for Operations Financed from Asian Development Fund Resources. Manila. 16 Available: 17 Checklists for actions required to contract consultants by method available in e-handbook on Project Implementation at: 57

58 Procurement Plan a for Tranche 1 Basic Data Project Name: Transport Network Development Investment Program, Project 1 Country: Afghanistan Grant Amount: $189 million Date of First Procurement Plan: 3 August 2011 TBD = to be determined. a Procurement plan will be revised annually. Executing Agency: Ministry of Public Works Grant Number: G0261-AFG Date of this Procurement Plan: 12 July 2012 A. Process Thresholds, Review and 18-Month Procurement Plan 1. Project Procurement Thresholds 60. Except as ADB may otherwise agree, the following process thresholds shall apply to procurement of goods and works. Method Procurement of Goods and Works Threshold International Competitive Bidding (ICB) for Works Above $1,000,000 International Competitive Bidding for Goods Above $500,000 National Competitive Bidding (NCB) for Works Below that stated for ICB, Works National Competitive Bidding for Goods Below that stated for ICB, Goods Shopping for Works Below $100,000 Shopping for Goods Below $100,000 Direct Contracting None 2. ADB Prior or Post Review 61. Except as ADB may otherwise agree, the following prior or post review requirements apply to the procurement and consultant recruitment methods used for the project. Civil works contracts will be procured through ICB using post qualification. ADB s prior review procedures will be followed. Procurement Method Prior or Post Comments Procurement of Goods and Works ICB Works Prior ICB Goods Prior NCB Works Post Prior review of first procurement NCB Goods Post Prior review of first procurement Shopping for Works Post Shopping for Goods Post Recruitment of Consulting Firms Quality- and Cost-Based Selection (QCBS) Prior Quality-Based Selection Prior Upon the necessity Recruitment of Individual Consultants Individual Consultants Prior Individual Consultants may be selected on an ad-hoc basis to provide intermittent and independent service on the 58

59 Procurement Method Prior or Post Comments projects ADB = Asian Development Bank, QBS = quality-based selection, QCBS = quality- and cost-based selection. 3. Goods and Works Contracts Estimated to Cost More Than $1 Million 62. The following table lists goods and works contracts for which procurement activity is either ongoing or expected to commence within the next 18 months. The detailed procurement schedule is shown in Attachment 1. General Description 1. Civil Works Reconstruction and Rehabilitation of Bagramy Sapary (50 km) Reconstruction and Rehabilitation of Jabul Saraj Nijrab (51 km) Reconstruction and Rehabilitation of Faizabad Baharak Contract Value ($ million) Procurement Method Prequalification of Bidders (y/n) Advertisement Date (quarter/year) 52.0 ICB N 8 September 2010 Comments Financed by ADB 27.5 ICB N 31 August 2010 Financed by ADB 65.5 ICB N 10 September 2010 (44 km) 2. Goods Not applicable ADB = Asian Development Bank, ICB = international competitive bidding, km = kilometers, N = no. Financed by ADB 4. Consulting Services Contracts Estimated to Cost More Than $100, The following table lists consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months. General Description Construction Supervision of Reconstruction and Rehabilitation of Bagramy Sapary Construction Supervision of Reconstruction and Rehabilitation of Jabul Saraj Nijrab Construction Supervision of Reconstruction and Rehabilitation of Faizabad Baharak Institutional reform and restructuring Northern Railway Feasibility Study Contract Value ($ million) Recruitment Method 4.5 QCBS FTP 2.5 QCBS FTP 4.0 QCBS FTP 1.5 QCBS FTP 2.5 QCBS FTP Advertisement Date (quarter/year) International or National Assignment Comments Q3/2010 International Quality: Cost ratio: 70:30. Q3/2010 International Quality: Cost ratio: 70:30 Q1/2012 International Quality: Cost ratio: 70:30 Q4/2012 International Quality: Cost ratio: 90:10 Q4/2012 International Quality: Cost ratio: 90:10 59

60 General Description Contract Value ($ million) Recruitment Method Advertisement Date (quarter/year) International or National Assignment Comments FTP = Full Technical Proposal, QCBS = quality- and cost-based selection. 5. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100, The following table groups smaller-value goods, works and consulting services contracts for which procurement activity is either ongoing or expected to commence within the next 18 months. General Description Value of Contracts (cumulative $ million) Number of Contracts Procurement / Recruitment Method 1 Comments Not applicable B. Indicative List of Packages Required Under the Project 65. The following table provides an indicative list of all procurement (goods, works, and consulting services) over the life of the project. Contracts financed by the Recipient and others should also be indicated, with an appropriate notation in the comments section. General Description Works Reconstruction and Rehabilitation of Bagramy Sapary (50 km) Reconstruction and Rehabilitation of Jabul Saraj Nijrab (51 km) Reconstruction and Rehabilitation of Faizabad Baharak (44 km) Estimated Value (cumulative $ million) Estimated Number of Contracts Procurement Method Domestic Preference Applicable Comments ICB Design- Build Contract procured ICB Design- Build Contract procured ICB Design- Build Contract procured Goods Not applicable Consulting Services Construction Supervision of Reconstruction and Rehabilitation of Bagramy International QCBS FTP Consultant selected 60

61 General Description Sapary Construction Supervision of Reconstruction and Rehabilitation of Jabul Saraj Nijrab Construction Supervision of Reconstruction and Rehabilitation of Faizabad Baharak Institutional reform and restructuring Estimated Value (cumulative $ million) Estimated Number of Contracts Procurement Method International QCBS International QCBS International QCBS Domestic Preference Applicable FTP FTP FTP Comments Consultant selected Consultant selected Northern Railway Feasibility Study International QCBS FTP ADB = Asian Development Bank, FTP = Full Technical Proposal, ICB = international competitive bidding, QCBS = quality- and cost-based selection C. National Competitive Bidding 1. General 66. National competitive bidding for the procurement of goods and related services shall conform to the provisions for Open Tender without prequalification as prescribed in the Procurement Law of October 2005 and elaborated in the Rules of Procedure for Public Procurement issued by the Ministry of Finance in April 2007, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the ADB Procurement Guidelines. Registration and Other Pre-Bid Requirements (i) (ii) (iii) (iv) Bidding shall not be restricted to Shortlists or Standing Lists. No bid shall be declared as ineligible of the grounds of debarment without ADB s prior concurrence. No bid shall be declared ineligible on the grounds of government regulations that restrict sources without ADB s prior concurrence. Foreign suppliers and contractors from ADB member countries shall be allowed to bid, without registration, licensing, and other government authorizations. However, in case these foreign suppliers and contractors are declared winning bidders, the requirements may be completed after award and before signing of contract, without unreasonable costs or additional requirements. 61

62 Prequalification 67. Post qualification shall be used unless prequalification is explicitly provided for in the loan agreement/procurement plan. Irrespective of the procedure applied (whether prequalification or post qualification), no domestic or foreign contractor shall be precluded from participation. 68. If prequalification is undertaken, the prequalification criteria should include "Eligibility Requirements", "Financial Situation", "Pending Litigation", and "Experience". Technical Capacity (personnel and equipment) should not be part of the prequalification criteria. 69. Interested bidders shall be given a minimum period of 28 days for the preparation and submission of prequalification applications. 2. Advertising 70. Bidding of NCB contracts estimated at $500,000 or more for goods and related services and NCB contracts estimated at $1,000,000 or more for works shall be advertised on ADB s website via the posting of the Procurement Plan. 3. Bidding Documents 71. Procuring entities shall use standard bidding documents acceptable to ADB, based ideally on the standard bidding documents issued by ADB. 4. Bidding Period 72. Procuring entities shall allow for a minimum of four weeks for submission of bids. 5. Bid Security 73. Where required, bid security shall be in the form of a bank guarantee or check from a reputable bank and should not be more than two percent of the estimated value of contract to be procured. 6. Preferences 74. No preference of any kind shall be given shall be given to domestic bidders or for domestically manufactured goods. 7. Evaluation 75. No bid shall be rejected on the grounds of price, or for any other reason(s) not related to the evaluation and qualification criteria, without ADB s prior concurrence. 76. Prompt payment discounts offered by bidders shall not be considered in bid evaluation. 8. Price Negotiations 77. Price negotiation shall be allowed only after receiving ADB s prior concurrence. 62

63 9. Advance Payments 78. No advance payment shall be made without an advance payment security in the form of a bank guarantee or check from a reputable bank. 10. Government-Owned Enterprises 79. Government-owned enterprises in Afghanistan shall be eligible to participate only if they can establish that they are legally and financially autonomous, operate under commercial law, and are not a dependent agency of the procuring entity, or the Project Executing Agency, or the Implementing Agency. 11. Right to Inspect/Audit 80. A provision shall be included in all NCB works and goods contracts financed by the Bank (ADB) requiring suppliers and contractors to permit ADB to inspect their accounts and records and other documents relating to the bid submission and the performance of the contract, and to have them audited by auditors appointed by ADB. 12. Anti Corruption Policy (i) (ii) The Borrower shall reject a proposal for award if it determines that the bidder recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive, or coercive practices in competing for the contract in question. ADB will declare a firm or individual ineligible, either indefinitely or for a stated period, to be awarded a contract financed by ADB, if it at any time determines that the firm or individual has, directly or through an agent, engaged in corrupt, fraudulent, collusive, or coercive practices in competing for, or in executing, ADBfinanced contract, as indicated in paragraph 1.14 (a) of ADB's Procurement Guidelines. 13. Disclosure of Decision on Contract Awards 81. At the same time that notification of award of Contract is given to the successful bidder, the results of bid evaluation shall be published in a local newspaper, or well-known freely accessible website identifying the bid and lot numbers and providing information on (i) name of each bidder who submitted a Bid, (ii) bid prices as read out at bid opening, (iii) name of bidders whose bids were rejected and the reasons for their rejection, and (iv) name of the winning bidder, and the price it offered, as well as duration and summary scope of the contract awarded. The executing agency/implementing agency/contracting authority shall respond in writing to unsuccessful bidders who seek explanations on the grounds on which their bids are not selected. 14. Member Country Restriction 82. Bidders must be nationals of member countries of ADB, and offered goods, works and related services must be produced in and supplied from member countries of ADB. 63

64 D. Review of Contract Modifications 83. ADB will review contract modifications in accordance with the procedures set forth in the grant agreement between the Recipient and ADB. E. Consultant's Terms of Reference 84. Consulting service for Construction Supervision, Feasibility Study and Detailed Design. Consultant will be engaged for each tranche of the investment program to perform as the Engineer of the Project. The consultant will administer the construction contracts and ensure that the contractual clauses for both quality and specifications of work are complied with, and the works are constructed in accordance with the provisions of the construction contracts. The consultant s representative will be a full-time professional resident engineer in the project area in accordance with the provisions of the construction contracts. In addition, the consultant will also carry out feasibility study and detailed design of each subsequent tranche. 85. Consulting service for Sector and Institutional Reform and Restructuring. Consultant will be engaged for the component of Sector and Institutional Reform and Restructuring along with generation of a Business Plan. The service will be implemented in the three phases over the investment program, and is expected to achieve (i) reforming and restructuring MPW PMO and (ii) strengthening MPW PMO s technical and management capacity. In Phase 1 as a part of Tranche 1, the Consultant will work on (i) preparing MPW PMO s reform and restructuring plan and (ii) preparing MPW PMO s human resource development plan. TOR for subsequent phases will be determined upon discussions between MPW, relevant authorities and ADB. 86. Procurement of works, goods and services under the additional financing for the Hairatan to Mazar-e-Sharif Railway Project will follow the updated procurement plan contained in the Project Administration Manual (PAM). 87. For Tranche 2, a total estimated 1680 person-months (371 international, 1309 national) of consulting services are required to (i) construction supervision, and (ii) institutional reform and restructuring of MPW PMO. Consulting firms will be engaged using the quality- and cost-based selection (QCBS) method with a standard quality:cost ratio of 90:10. 64

65 Procurement Plan for Tranche 2 18 Basic Data Project Name: Transport Network Development Investment Program - Tranche 2 Project Number: Approval Number: 0327/0328 Country: Afghanistan, Islamic Republic of Project Financing Amount: US$ 255,000,000 ADB Financing: US$ 149,000,000 Cofinancing (ADB Administered): US$ 87,000,000 Non-ADB Financing: US$ 19,000,000 Date of First Procurement Plan: December Executing Agency: Ministry of Public Works Implementing Agency: N/A Date of this Procurement Plan: 13 January 2015 Version 2 A. Methods, Thresholds, Review and 18-Month Procurement Plan 1. Procurement and Consulting Methods and Thresholds Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works. Procurement of Goods and Works Method Threshold International Competitive Bidding for US$ 500,000 and Above Prior review Goods Comments National Competitive Bidding for Between US$ 100,000 and The first NCB is subject to prior review, Goods US$ 499,999 thereafter post review. Direct Contracting for Goods No threshold (allowed for any Prior review amount) Shopping for Goods Up to US$ 99,999 Prior review International Competitive Bidding for US$ 1,000,000 and Above Prior review Works National Competitive Bidding for Between US$ 100,000 and The first NCB is subject to prior review, Works US$ 999,999 thereafter post review. Shopping for Works Up to US$ 99,999 Prior review Direct Contracting for Works No threshold (allowed for any amount) Prior review Consulting Services Method Comments Quality- and Cost-Based Selection for Consulting Firm Prior review Quality-Based Selection for Consulting Firm Prior review Upon the necessity Individual Consultants Selection for Individual Prior review Consultant Individual consultants may be selected on an ad-hoc basis to provide intermittent and independent service on the projects 2. Goods and Works Contracts Estimated to Cost $1 Million or More The following table lists goods and works contracts for which the procurement activity is either ongoing or expected to commence within the next 18 months. 18 Procurement plan will be revised annually. 65

66 Package Number MPW/1592/A DB/ICB General Description Reconstruction and Rehabilitation of Chah-e-Anjir- Gereshk (31 km) Estimated Value Procurement Method Review (Prior/ Post) Bidding Procedure Advertiseme nt Date (quarter/year) Comments 47,100, ICB PRIOR 1S2E Q1 / 2014 Prequalification of Bidders: N Domestic Preference Applicable: N Bidding Document: Large Works MPW/1593/A DB/ICB TBD-04 Reconstruction and Rehabilitation of Sharan-Angoor- Ada (50 km) Asset Management System 52,197, DC Comments: Financed by ADB & AITF. Second bidding. PRIOR Q1 / 2014 Domestic Preference Applicable: N 1,000, ICB PRIOR 1S1E Q4 / 2014 Comments: Financed by ADB. Second bidding Prequalification of Bidders: N Domestic Preference Applicable: N Bidding Document: Goods Comments: Financed by ADB. 3. Consulting Services Contracts Estimated to Cost $100,000 or More The following table lists consulting services contracts for which the recruitment activity is either ongoing or expected to commence within the next 18 months. Package Number MPW ADB QCBS General Description Pre-Feasibility Study Bamyan- Kandahar Estimated Value Recruitment Method Review (Prior/ Post) Advertisement Date (quarter/year) Type of Proposal Comments 2,100, QCBS PRIOR Q1 / 2013 FTP Assignment: International Quality-Cost Ratio: 90:10 Comments: 66

67 Package Number TBD-08 General Description Capacity Building for MPW Estimated Value Recruitment Method Review (Prior/ Post) Advertisement Date (quarter/year) Type of Proposal Comments Awarded to Dongshin Engineering & Consultant Co. Ltd. 1,100, ICS PRIOR Q2 / 2014 Assignment: International Expertise: Transport Advisor, Rail Advisor, Procurement Specialist, Resettlement Specialist TBD-10 PMO Support 1,000, ICS PRIOR Q3 / 2014 Comments: Approved change memo uploaded in eops.. Assignment: National Expertise: International and National 4. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000 (Smaller Value Contracts) The following table lists smaller-value goods, works and consulting services contracts for which the activity is either ongoing or expected to commence within the next 18 months. Goods and Works Package Number None General Description Estimated Value Number of Contracts Procurement Method Review (Prior/ Post) Bidding Procedure Advertisement Date (quarter/year) Comments Consulting Services Package Number None General Description Estimated Value Number of Contracts Recruitment Method Review (Prior/ Post) Advertisement Date (quarter/year) Type of Proposal Comments 67

68 B. Indicative List of Packages Required Under the Project The following table provides an indicative list of goods, works and consulting services contracts over the life of the project, other than those mentioned in previous sections (i.e., those expected beyond the current period). Goods and Works Package Number None General Description Estimated Value (cumulative) Estimated Number of Contracts Procurement Method Review (Prior/Post) Bidding Procedure Comments Consulting Services Package Number None General Description Estimated Value (cumulative) Estimated Number of Contracts Recruitment Method Review (Prior/Post) C. List of Awarded and On-going, and Completed Contracts Type of Proposal Comments The following tables list the awarded and on-going contracts, and completed contracts. 1. Awarded and Ongoing Contracts Goods and Works Package Number General Description MPW/1591/ADB/ICB Reconstruction and Rehabilitation of Sapary- Jalalabad Estimated Value Contract Value Procurement Method Advertisement Date (quarter/year) Date of ADB Approval of Contract Award 101,100, ,998, ICB Q1 / NOV- 13 Comments Contract signed on 4- Dec-13 with Xinjiang Beixin Road & Bridge Group Co. Ltd. (PRC) Consulting Services Package Number MPW/1280/QCBS MPW/1528/ADB/ QCBS General Description Construction Supervision of Reconstruction and Rehabilitation of Chah-e-Anjir- Gereshk Construction Supervision of Reconstruction and Rehabilitation of Sharan-Angor- Estimated Value Contract Value Recruitment Method Advertisement Date (quarter/year) Date of ADB Approval of Contract Award 5,100, ,969, QCBS Q3 / SEP- 13 4,200, ,553, QCBS Q3 / MAR- 14 Comments Contract signed on 9-Nov-13 with Angel Lazaro & Associates International Consulting Engineers and Architects in association with RCOMTECH Engineering Contract awarded to DONG-IL (KOR) 68

69 MPW/1527/ADB/ QCBS Ada Construction Supervision of Reconstruction and Rehabilitation of Sapary- Jalalabad 6,200, ,679, QCBS Q3 / DEC- 11 Contract signed on 11-Jan-14 with Sheladia Associates Inc. (USA) C. National Competitive Bidding 1. General 88. National competitive bidding for the procurement of goods and related services shall conform to the provisions for Open Tender without prequalification as prescribed in the Procurement Law of October 2005 and elaborated in the Rules of Procedure for Public Procurement issued by the Ministry of Finance in April 2007, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the ADB Procurement Guidelines. (i) (ii) No bid shall be declared ineligible on the grounds of government regulations that restrict sources without ADB s prior concurrence. Foreign suppliers and contractors from ADB member countries shall be allowed to bid, without registration, licensing, and other government authorizations. However, in case these foreign suppliers and contractors are declared winning bidders, the requirements may be completed after award and before signing of contract, without unreasonable costs or additional requirements. 2. Prequalification 89. Post qualification shall be used unless prequalification is explicitly provided for in the loan agreement/procurement plan. Irrespective of the procedure applied (whether prequalification or post qualification), no domestic or foreign contractor shall be precluded from participation. 90. If prequalification is undertaken, the prequalification criteria should include "Eligibility Requirements", "Financial Situation", "Pending Litigation", and "Experience". Technical Capacity (personnel and equipment) should not be part of the prequalification criteria. 91. Interested bidders shall be given a minimum period of 28 days for the preparation and submission of prequalification applications. 3. Advertising 92. Bidding of NCB contracts estimated at $500,000 or more for goods and related services and NCB contracts estimated at $1,000,000 or more for works shall be advertised on ADB s website via the posting of the Procurement Plan. 69

70 4. Bidding Documents 93. Procuring entities shall use standard bidding documents acceptable to ADB, based ideally on the standard bidding documents issued by ADB. 5. Bidding Period 94. Procuring entities shall allow for a minimum of four weeks for submission of bids. 6. Bid Security 95. Where required, bid security shall be in the form of a bank guarantee or check from a reputable bank and should not be more than two percent of the estimated value of contract to be procured. 7. Preferences 96. No preference of any kind shall be given shall be given to domestic bidders or for domestically manufactured goods. 8. Evaluation 97. No bid shall be rejected on the grounds of price, or for any other reason(s) not related to the evaluation and qualification criteria, without ADB s prior concurrence. 98. Prompt payment discounts offered by bidders shall not be considered in bid evaluation. 9. Price Negotiations 99. Price negotiation shall be allowed only after receiving ADB s prior concurrence. 10. Advance Payments 100. No advance payment shall be made without an advance payment security in the form of a bank guarantee or check from a reputable bank. 11. Government-Owned Enterprises 101. Government-owned enterprises in Afghanistan shall be eligible to participate only if they can establish that they are legally and financially autonomous, operate under commercial law, and are not a dependent agency of the procuring entity, or the Project Executing Agency, or the Implementing Agency. 12. Right to Inspect/Audit 102. A provision shall be included in all NCB works and goods contracts financed by the Bank (ADB) requiring suppliers and contractors to permit ADB to inspect their accounts and records and other documents relating to the bid submission and the performance of the contract, and to have them audited by auditors appointed by ADB. 70

71 13. Anti Corruption Policy (i) (ii) The Borrower shall reject a proposal for award if it determines that the bidder recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive, or coercive practices in competing for the contract in question. ADB will declare a firm or individual ineligible, either indefinitely or for a stated period, to be awarded a contract financed by ADB, if it at any time determines that the firm or individual has, directly or through an agent, engaged in corrupt, fraudulent, collusive, or coercive practices in competing for, or in executing, ADBfinanced contract, as indicated in paragraph 1.14 of ADB's Procurement Guidelines. 14. Disclosure of Decision on Contract Awards 103. At the same time that notification of award of Contract is given to the successful bidder, the results of bid evaluation shall be published in a local newspaper, or well-known freely accessible website identifying the bid and lot numbers and providing information on (i) name of each bidder who submitted a Bid, (ii) bid prices as read out at bid opening, (iii) name of bidders whose bids were rejected and the reasons for their rejection, and (iv) name of the winning bidder, and the price it offered, as well as duration and summary scope of the contract awarded. The executing agency/implementing agency/contracting authority shall respond in writing to unsuccessful bidders who seek explanations on the grounds on which their bids are not selected. 15. Member Country Restriction 104. Bidders must be nationals of member countries of ADB, and offered goods, works and related services must be produced in and supplied from member countries of ADB. D. Review of Contract Modifications 105. ADB will review contract modifications in accordance with the procedures set forth in the relevant grant agreement between the Recipient and ADB. 71

72 E. Consultant's Terms of Reference 106. The following provides the overview of the terms of reference (TOR) for the consulting services. Outline Terms of Reference (TORs) are provided in Attachments 2, 3, and 4 for the project management and supervision consultant packages Consulting services for Construction Supervision, Feasibility Study, and Detailed Design. Consultants will be engaged for each tranche of the Investment Program to perform as the Engineer of the subprojects. The consultants will administer the construction contracts and ensure that the contractual clauses for both quality and specifications of work are complied with, and the works are constructed in accordance with the provisions of the construction contracts. The consultants representatives will be a full-time professional resident engineer in the project area in accordance with the provisions of the construction contracts. In addition, the consultants will also carry out feasibility study and detailed design of each subsequent tranche Consulting services for Capacity Building. Consultants will be engaged for activities under Component B of the Investment Program (Transport Network Management Capacity Development). The consulting services will be implemented in the three phases over the Investment Program, and are expected to achieve: (i) reforming and restructuring MPW PMO and (ii) strengthening MPW PMO s technical and management capacity. In Phase 2 as a part of Tranche 2, the consultants work will focus on: (i) implementing MPW PMO s reform and restructuring plan (ii) implementing MPW PMO s human resource development plan, and its outline TOR as presented in the FAM, (iii) implementing the Asset Management System, (iv) continuing sector governance improvements by building upon the progress made in Phase 1, with emphasis on strengthening the Rail Authority, Road Authority, and Road Fund, and (v) continuing to provide general support to MPW-PMO. TORs for subsequent phases will be determined upon discussions between MPW PMO, relevant authorities and ADB based on progress and revised demands. 72

73 Procurement Plan 19 for Tranche 3 Basic Data Project Name: Transport Network Development Investment Program - Tranche 3 Project Number: Approval Number: 0355 Country: Afghanistan, Islamic Republic of Executing Ministry of Public Works Agency: Project Financing Amount: US$ 230,000,000 Implementing Agency: ADB Financing: US$ 220,000,000 N/A Cofinancing (ADB Administered): Non-ADB Financing: US$ 10,000,000 Date of First Procurement Plan: 11 September 2013 Date of this Procurement Plan: A. Methods, Thresholds, Review and 18-Month Procurement Plan 1. Procurement and Consulting Methods and Thresholds 22 April 2014 Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works. Procurement of Goods and Works Method Threshold Comments International Competitive Bidding for US$ 500,000 and Above Prior review Goods National Competitive Bidding for Between US$ 100,000 and US$ The first NCB is subject to prior review, Goods 499,999 thereafter post review. Shopping for Goods Up to US$ 99,999 Post review International Competitive Bidding for US$ 1,000,000 and Above Prior review Works National Competitive Bidding for Between US$ 100,000 and US$ The first NCB is subject to prior review, Works 999,999 thereafter post review. Shopping for Works Up to US$ 99,999 Post review Consulting Services Method Comments Quality- and Cost-Based Selection for Consulting Firm Prior review Quality-Based Selection for Consulting Firm Prior review. Upon the necessity. Individual Consultants Selection for Individual Prior review. Individual consultants may be selected on an adhoc basis to provide intermittent and independent service on Consultant the projects. 2. Goods and Works Contracts Estimated to Cost $1 Million or More The following table lists goods and works contracts for which the procurement activity is either ongoing or expected to commence within the next 18 months. Package Number MPW- 159X- ICB General Description Reconstruction and Rehabilitation of Dar-i-Suf- Yakawlang (178 km) Estimated Value Procurement Method Review (Prior/ Post) Bidding Procedure Advertisement Date (quarter/year) Comments 185,000, ICB PRIOR 1S2E Q2 / 2014 Prequalification of Bidders: N Domestic Preference Applicable: N 19 Procurement plan will be revised annually. 73

74 Package Number General Description Estimated Value Procurement Method Review (Prior/ Post) Bidding Procedure Advertisement Date (quarter/year) Comments Bidding Document: Large Works Comments: Financed by ADB 3. Consulting Services Contracts Estimated to Cost $100,000 or More The following table lists consulting services contracts for which the recruitment activity is either ongoing or expected to commence within the next 18 months. Package Number Indv-PMO General Description Individual Consultants for PMO Support Estimated Value Recruitment Method Review (Prior/ Post) Advertisement Date (quarter/year) Type of Proposal Comments 1,000, ICS PRIOR Q4 / 2014 Assignment: International Expertise: International and National MPW-XXXX- ADB-QCBS Construction Supervision of Reconstruction of Dar-i-Suf- Yakawlang 9,300, QCBS PRIOR Q2 / 2014 FTP Assignment: International Quality-Cost Ratio: 90:10 Pre-FS Gardandewal Pre-Feasibility Study Gardandewal- Chaghcharan 2,100, QCBS PRIOR Q3 / 2014 FTP Comments: As per approved qualitycost-ratio for this Grant Assignment: International Quality-Cost Ratio: 90:10 Pre-FS Kabul Road Pre-Feasibility Kabul Ring Road 2,100, QCBS PRIOR Q4 / 2014 FTP Comments: As per approved qualitycost-ratio for this Grant Assignment: International 74 Quality-Cost Ratio: 90:10

75 Package Number General Description Estimated Value Recruitment Method Review (Prior/ Post) Advertisement Date (quarter/year) Type of Proposal Comments Comments: As per approved qualitycost-ratio for this Grant 4. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000 (Smaller Value Contracts) The following table groups smaller-value goods, works and consulting services contracts for which the activity is either ongoing or expected to commence within the next 18 months. Goods and Works Package Number None General Description Estimated Value Number of Contracts Procurement Method Review (Prior/ Post) Bidding Procedure Advertisement Date (quarter/year) Comments Consulting Services Package Number None General Description Estimated Value Number of Contracts Recruitment Method Review (Prior/ Post) Advertisement Date (quarter/year) Type of Proposal Comments B. Indicative List of Packages Required Under the Project The following table provides an indicative list of goods, works and consulting services contracts over the life of the project, other than those mentioned in previous sections (i.e., those expected beyond the current period). Goods and Works Package Number None General Description Estimated Value (cumulative) Estimated Number of Contracts Procurement Method Review (Prior/Post) Bidding Procedure Comments Consulting Services Package Number None General Description Estimated Value (cumulative) Estimated Number of Contracts Recruitment Method Review (Prior/Post) Type of Proposal Comments C. National Competitive Bidding 1. General 109. National competitive bidding for the procurement of goods and related services shall conform to the provisions for Open Tender without prequalification as prescribed in the Procurement Law of October 2005 and elaborated in the Rules of Procedure for Public Procurement issued by the Ministry of Finance in April 2007, with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the ADB Procurement Guidelines. 75

76 2. Registration and Other Pre-Bid Requirements (i) (ii) (iii) (iv) Bidding shall not be restricted to Shortlists or Standing Lists. No bid shall be declared as ineligible on the grounds of debarment without ADB s prior concurrence. No bid shall be declared ineligible on the grounds of government regulations that restrict sources without ADB s prior concurrence. Foreign suppliers and contractors from ADB member countries shall be allowed to bid, without registration, licensing, and other government authorizations. However, in case these foreign suppliers and contractors are declared winning bidders, the requirements may be completed after award and before signing of contract, without unreasonable costs or additional requirements. 3. Prequalification 110. Post qualification shall be used unless prequalification is explicitly provided for in the loan agreement/procurement plan. Irrespective of the procedure applied (whether prequalification or post qualification), no domestic or foreign contractor shall be precluded from participation If prequalification is undertaken, the prequalification criteria should include "Eligibility Requirements", "Financial Situation", "Pending Litigation", and "Experience". Technical Capacity (personnel and equipment) should not be part of the prequalification criteria Interested bidders shall be given a minimum period of 28 days for the preparation and submission of prequalification applications. 4. Advertising 113. Bidding of NCB contracts estimated at $500,000 or more for goods and related services and NCB contracts estimated at $1,000,000 or more for works shall be advertised on ADB s website via the posting of the Procurement Plan. 5. Bidding Documents 114. Procuring entities shall use standard bidding documents acceptable to ADB, based ideally on the standard bidding documents issued by ADB. 6. Bidding Period 115. Procuring entities shall allow for a minimum of four weeks for submission of bids. 7. Bid Security 116. Where required, bid security shall be in the form of a bank guarantee or check from a reputable bank and should not be more than two percent of the estimated value of contract to be procured. 8. Preferences 117. No preference of any kind shall be given shall be given to domestic bidders or for domestically manufactured goods. 76

77 9. Evaluation 118. No bid shall be rejected on the grounds of price, or for any other reason(s) not related to the evaluation and qualification criteria, without ADB s prior concurrence Prompt payment discounts offered by bidders shall not be considered in bid evaluation. 10. Price Negotiations 120. Price negotiation shall be allowed only after receiving ADB s prior concurrence. 11. Advance Payments 121. No advance payment shall be made without an advance payment security in the form of a bank guarantee or check from a reputable bank. 12. Government-Owned Enterprises 122. Government-owned enterprises in Afghanistan shall be eligible to participate only if they can establish that they are legally and financially autonomous, operate under commercial law, and are not a dependent agency of the procuring entity, or the Project Executing Agency, or the Implementing Agency. 13. Right to Inspect/Audit 123. A provision shall be included in all NCB works and goods contracts financed by the Bank (ADB) requiring suppliers and contractors to permit ADB to inspect their accounts and records and other documents relating to the bid submission and the performance of the contract, and to have them audited by auditors appointed by ADB. 14. Anti Corruption Policy (i) (ii) The Borrower shall reject a proposal for award if it determines that the bidder recommended for award has, directly or through an agent, engaged in corrupt, fraudulent, collusive, or coercive practices in competing for the contract in question. ADB will declare a firm or individual ineligible, either indefinitely or for a stated period, to be awarded a contract financed by ADB, if it at any time determines that the firm or individual has, directly or through an agent, engaged in corrupt, fraudulent, collusive, or coercive practices in competing for, or in executing, ADBfinanced contract, as indicated in paragraph 1.14 of ADB's Procurement Guidelines. 15. Disclosure of Decision on Contract Awards 124. At the same time that notification of award of Contract is given to the successful bidder, the results of bid evaluation shall be published in a local newspaper, or well-known freely accessible website identifying the bid and lot numbers and providing information on (i) name of each bidder who submitted a Bid, (ii) bid prices as read out at bid opening, (iii) name of bidders whose bids were rejected and the reasons for their rejection, and (iv) name of the winning bidder, and the price it offered, as well as duration and summary scope of the contract awarded. 77

78 The executing agency/implementing agency/contracting authority shall respond in writing to unsuccessful bidders who seek explanations on the grounds on which their bids are not selected. In the case of consultants hired to support the PMO, the names of those candidates shortlisted and ultimately selected will be published. 16. Member Country Restriction 125. Bidders must be nationals of member countries of ADB, and offered goods, works and related services must be produced in and supplied from member countries of ADB. D. Review of Contract Modifications 126. ADB will review contract modifications in accordance with the procedures set forth in the relevant grant agreement between the Recipient and ADB. E. Consultant's Terms of Reference 127. The following provides the overview of the terms of reference (TOR) for the consulting services. Outline Terms of Reference (TORs) are provided in the FAM Consulting services for Construction Supervision, Feasibility Study and Detailed Design. Consultants will be engaged for each tranche of the Investment Program to perform as the Engineer of the subprojects. The consultants will administer the construction contracts and ensure that the contractual clauses for both quality and specifications of work are complied with, and the works are constructed in accordance with the provisions of the construction contracts. The consultants representatives will be a full-time professional resident engineer in the project area in accordance with the provisions of the construction contracts. In addition, the consultants will also carry out feasibility study and detailed design of each subsequent tranche Consulting Services for Pre-Feasibility Studies. Consultants will be engaged for activities under Component B of the Investment Program (Transport Network Management Capacity Development). The consulting services will conduct feasibility studies on priority projects of the government to meet demands and complete Afghanistan s transport network. 78

79 PROCUREMENT PLAN FOR TRANCHE 4 Basic Data Project Name: Transport Network Development Investment Program - Tranche 4 Project Number: Approval Number: 0422/0423 Country: Afghanistan, Islamic Republic of Project Financing Amount: $146,000,000 ADB Financing: $109,000,000 Cofinancing (ADB Administered): $21,000,000 Non-ADB Financing: $16,000,000 Date of First Procurement Plan: 20 November 2014 Executing Agency: Ministry of Public Works Implementing Agency: N/A Date of this Procurement Plan: 20 November 2014 A. Methods, Thresholds, Review and 18-Month Procurement Plan 1. Procurement and Consulting Methods and Thresholds 130. Except as the Asian Development Bank (ADB) may otherwise agree, the following process thresholds shall apply to procurement of goods and works. Procurement of Goods and Works Method Threshold Comments International Competitive $2,000,000 and Above Prior review Bidding for Goods National Competitive Between $100,001 and The first NCB is subject to prior review, thereafter post Bidding for Goods $1,999,999 review. Direct Contracting for No threshold (allowed Prior review Goods for any amount) Shopping for Goods Up to $100,000 Prior review International Competitive $5,000,000 and Above Prior review Bidding for Works National Competitive Between $100,001 and The first NCB is subject to prior review, thereafter post Bidding for Works $4,999,999 review. Shopping for Works Up to $100,000 Prior review Consulting Services Method Quality- and Cost-Based Selection for Consulting Firm Prior review Individual Consultants Selection for Individual Consultant Prior review Comments 2. Goods and Works Contracts Estimated to Cost $1 Million or More 131. The following table lists goods and works contracts for which the procurement activity is either ongoing or expected to commence within the next 18 months. Package Number CW-1 General Description Reconstruction and Rehabilitation of Baharak- Eshkashim (108 km) Estimated Value ($) Procurement Method Review (Prior/ Post) Bidding Procedure Advertisement Date (quarter/year) Comments 94,200, ICB Prior 1S2E Q1 / 2015 Prequalification of Bidders: N Domestic Preference Applicable: N 79

80 Package Number General Description Estimated Value ($) Procurement Method Review (Prior/ Post) Bidding Procedure Advertisement Date (quarter/year) Comments Bidding Document: Large Works Goods-1 Border Crossing Point and Road Monitoring Equipment for CAREC Corridors 5 & 6 Comments: Financed by 5,100, ICB Prior 1S2E Q4 / 2015 ADB Prequalification of Bidders: N Domestic Preference Applicable: N Bidding Document: Goods Comments: Financed by EU 3. Consulting Services Contracts Estimated to Cost $100,000 or More 132. The following table lists consulting services contracts for which the recruitment activity is either ongoing or expected to commence within the next 18 months. Package Number CS-1 General Description Construction Supervision of Reconstruction and Rehabilitation of Baharak- Eshkashim Estimated Value ($) Recruitment Method Review (Prior/ Post) Advertisement Date (quarter/year) Type of Proposal Comments 7,700, QCBS Prior Q1 / 2015 FTP Assignment: International Quality-Cost Ratio: 90:10 CS-2 Pilot O&M Study and Best Practices Support for CAREC Corridors 5 & 6 4,100, QCBS Prior Q2 / 2015 FTP Comments: The civil works contract is design-build modality thus high quality supervision consultant is required to ensure international standard design and construction. Assignment: International Quality-Cost 80

81 Package Number General Description Estimated Value ($) Recruitment Method Review (Prior/ Post) Advertisement Date (quarter/year) Type of Proposal Comments Ratio: 90:10 Indv-AfRA Support Individual Consultants for AfRA Support Comments: Financed by EU. 8,700, ICS Prior Q1 / 2015 Assignment: International Expertise: Railway Indv- CAREC Corridors Individual Consultants for Studies on CAREC Corridors 5 & 6 Comments: 2,600, ICS Prior Q2 / 2015 Financed by EU Assignment: International Expertise: Transport Facilitation Indv-PMO Support Individual Consultants for PMO Support Comments: Financed by EU 1,100, ICS Prior Q1 / 2015 Assignment: National, International Expertise: Project Management 4. Goods and Works Contracts Estimated to Cost Less than $1 Million and Consulting Services Contracts Less than $100,000 (Smaller Value Contracts) 133. The following table groups smaller-value goods, works and consulting services contracts for which the activity is either ongoing or expected to commence within the next 18 months. Goods and Works Package Number None General Description Estimated Value ($) Number of Contracts Procuremen t Method Review (Prior/Post) Bidding Procedure Advertisement Date (quarter/year) Comments Consulting Services Package Number None General Description Estimated Value ($) Number of Contracts Recruitment Method Review (Prior/ Post) Advertisement Date (quarter/year) Type of Proposal Comments 81

82 B. Indicative List of Packages Required Under the Project 134. The following table provides an indicative list of goods, works and consulting services contracts over the life of the project, other than those mentioned in previous sections (i.e., those expected beyond the current period). Goods and Works Package Number None General Description Estimated Value (cumulative $) Estimated Number of Contracts Procurement Method Review (Prior/Post) Bidding Procedure Comments Consulting Services Package Number None General Description Estimated Value (cumulative $) Estimated Number of Contracts Recruitment Method Review (Prior/Post) Type of Proposal Comments C. Non-ADB Financing 135. The following table lists goods, works and consulting services contracts over the life of the project, financed by Non-ADB sources. Goods and Works General Description Border Crossing Point and Road Monitoring Equipment for CAREC Corridors 5 & 6 Estimated Value Estimated Number Procurement Comments (cumulative $) of Contracts Method 5,100, ICB Description: Automatic digital scales, CCTV cameras, networking equipment Consulting Services General Description Pilot O&M Study and Best Practices Support for CAREC Corridors 5 & 6 Individual Consultants for Studies on CAREC Corridors 5 & 6 Individual Consultants for AfRA Support Individual Consultants for PMO Support Estimated Value Estimated Number Recruitment (cumulative $) of Contracts Method 4,100, QCBS Comments 2,600, ICS 50 person-months international and 100 person-months national for three separate studies on corridor performance monitoring, crossborder transport agreements and analysis of bottlenecks at border crossing points. 8,700, ICS 150 person-months international and 450 person-months national for training and advisory services. 1,100, ICS 82

83 VII. SAFEGUARDS 136. The Government of Afghanistan (GoA) will ensure that all the requirements prescribed in Schedule 5 of the FFA, and the following frameworks that have been prepared with respect to the Facility are complied with during the processing and implementation of the investment program: (i) (ii) (iii) (iv) environmental assessment and review framework ( EARF ); land acquisition and resettlement framework ( LARF ); gender action framework ( GAF ); and gender action plan ( GAP ) The safeguard frameworks cover the Facility specific information and requirements in accordance with ADB s Safeguard Policy Statement (2009) (SPS): (i) the general anticipated impacts of the projects likely to be financed under the Facility on the environment, involuntary resettlement, and indigenous peoples; (ii) the safeguard criteria that are to be used in selecting projects; (iii) the requirements and procedure that will be followed for screening and categorization, impact assessments, development of management plans, public consultation and information disclosure (including the 120-day disclosure rule, if required), and monitoring and reporting; (iv) the institutional arrangements (including budget and capacity requirements) and Afghanistan s and ADB s responsibilities and authorities for the preparation, review and clearance of safeguard documents As for subsequent tranches, at the preparation of each PFR, the applicability and relevance of each safeguard framework for the frameworks above will be reviewed and updated to ensure relevance and consistency with all applicable laws and regulations in Afghanistan and SPS (2009), as amended from time to time. In the event that there is a discrepancy between the laws and regulations of Afghanistan and ADB safeguard policies, the ADB safeguard policies will prevail. In addition, GoA will carry out due diligence works on ongoing projects to assess the status of compliance with the safeguards-related plans and frameworks For each project, GoA are required to submit safeguard monitoring reports semiannually covering all the aspects and issues from perspectives of environment, land acquisition and resettlement and indigenous people MPW will ensure that the Investment Program is implemented with active participation of all national stakeholders, using participatory practices, and consultation will continue throughout implementation of the Investment Program. Disclosure of relevant information to these stakeholders will continue throughout implementation of the Investment Program Pursuant to ADB's Safeguard Policy Statement (2009) (SPS), 20 ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS. ADB will ensure that the investment program is in compliance with applicable national laws and regulations and will apply the prohibited investment activities list. A. Environment 142. GoA will ensure that the design, construction, and operation and maintenance of the facilities under investment program are carried out in accordance with ADB s Safeguard Policy 20 Available at: 83

84 Statement (2009) (SPS), applicable laws and regulations in Afghanistan, the EARF, and respective IEEs or EIAs. 21 Afghanistan through the Ministry of Public Works will ensure that potential adverse environmental impacts arising from the investment program are minimized by implementing all mitigation and monitoring measures as presented in the environment management plan (EMP) included in the IEEs or EIAs. Afghanistan through the Ministry of Public Works will ensure that: (i) EMPs are updated when necessary. (ii) MPW PMO has sufficient resources to implement and record the implementation of the EMPs prepared for the investment program. (iii) Starting from project commencement, the PMO will submit semi-annual environmental reports to ADB, within three months of the close of each half of the calendar year during implementation of each individual project under the investment program. The report will include, among other things, a review of progress made on environmental measures detailed in the IEEs or EIAs and EMPs, and monitoring thereof; and problems encountered and remedial measures taken. (iv) Detailed engineering designs, civil works and other contracts for the investment program facilities incorporate applicable environmental measures identified in the IEEs or EIAs and EMPs. (v) Civil works contractors are supervised to ensure compliance with the requirements of the IEEs or EIAs and EMPs. (vi) If an EIA is required, it has to be disclosed to the public 120 days before the approval of the associated tranche by ADB Management. B. Land Acquisition and Resettlement 143. Afghanistan will ensure that each project financed under the Facility are developed, implemented and maintained in accordance with all applicable laws and regulations of Afghanistan, ADB s Safeguard Policy Statement (2009) and the LARF Afghanistan will cause MPW to ensure that: (i) for projects with involuntary resettlement, a land acquisition and resettlement plan (LARP) acceptable to ADB is prepared for each project in accordance with all applicable laws and regulations of Afghanistan, ADB s Safeguard Policy Statement (2009) and the LARF, as a submission with the PFR; (ii) all land and rights-of-way required by the projects are made available free and clear from any and all rights and claims of third parties and any other encumbrances in a timely manner, subject to compliance with all applicable laws and regulation of Afghanistan, ADB s Safeguard Policy Statement (2009), the LARF and the LARPs; and 21 The EARF is presented in Attachment The LARF is presented in Attachment 2. 84

85 (iii) no civil works contract for project involving resettlement will be awarded until the relevant LARP has been approved by ADB. Contractors will only commence civil works after the LARP has been implemented in accordance with its terms, as verified by an independent body or person To address the land acquisition and resettlement impacts, a LARP will be drafted for each subproject prior to approval. Given the design and build contract modality, the initial draft LARP will be updated based on final detailed engineering design. The LARPs will be disclosed to the project-affected persons. Compensation for lost assets and resettlement allowance will be paid to the affected persons, and the livelihood rehabilitation arrangements made in accordance with the updated LARP Information disclosure. All the affected persons (APs) in communities were involved in the subproject impact and socio-economic survey. On various occasions during meetings, interviews, focus group discussions, public consultation workshops, and community consultation meetings, local representatives participated in the planning and their concerns have been integrated into the LARPs. Before implementation, the village leaders and elders will further discuss and consult with the affected persons to their interests are protected as per ADB guidelines and the relevant laws of Afghanistan. MPW will disclose the LARPs locally in the communities. The LARPs will also be posted on ADB 's website and resettlement information booklets were distributed to affected households prior to tranche approval. The resettlement information booklet contains the resettlement scope, project schedule, compensation rates for land and other assets, relocation and economic rehabilitation' Strategies, and grievance redress mechanisms Grievance redress mechanism. An efficient grievance redress mechanism will assist the APs in resolving queries and complaints. The main objective of MPW in providing redress mechanism is to avoid potential delays on the commencement of construction works for the project; address and resolve the issues and complaints raised by the APs. The APs should be aware of the procedures on the resolution of grievances, which the resettlement team will inform to project stakeholders during project disclosures and public consultations As the concept on compensation is relatively new to the Government of Afghanistan, MPW, through the Engineer or their local staff, will provide a pro-forma letter to be used by APs for filing their complaints or grievances. MPW will also establish liaison with the Office of the District Governor to receive a copy of each complaint filed, track the complaint and prepare monthly reports on the status of the filed complaints, to be included in the regular progress reporting of the Project. Additionally, the implementing NGO will help the APs in preparing the grievance and sending it to the concerned authority, at the appropriate level, and in pursuing it. For this purpose the NGO will establish a Grievance Redress Unit within the project area There will be four-stage procedures for redress of grievances and complaints, however DPs will have the right to move a court of law at any stage. These are as follows: Complaints are to be filed at the district governor offices. The district government with the help from Shura, NGO and PMOs resettlement team is obliged to reply and explain the decision within 30 days from the date the complaint was received. The Grievance Redress Committee (GRC) will assist the district governor offices in the mediation and resolution of conflict. 85

86 If AP is unsatisfied or has no reply from the district governor office, grievances can then be lodged with the Province Governor offices. The Governor office will issue the final decision within 45 days. If AP is unsatisfied or has no reply from the provincial governor s office, grievances can then be lodged with the General Governor s Office in Kabul. The General Governor s office will issue the final decision within 60 days. The AP always has recourse at any stage through Afghanistan s legal channels and referred to the appropriate courts; however, every effort will be made to avoid this since the system is presently critically weak. Should the AP want to pursue legal recourse, in a court of law at anytime, MPW through its staff or consultant and implementing NGO will ensure that support is given to the AP to prepare a case The APs can call upon the support of the NGO to assist them in presenting their grievances or queries to the GRC if necessary. The NGO will act as an in-built grievance redress body. The APs, who would not be satisfied with the decision of the GRC, will have the right to take the grievance to the judiciary. Taking grievances to the judiciary will be avoided as far possible and the NGO will make utmost efforts at reconciliation at the level of GRC and MPW will make every effort to solve the issue before going to the court as a last resort. Each LARP prepared will provide a detailed grievance redress mechanism Monitoring and Evaluation. Internal and external monitoring of LARP implementation will be conducted. Monitoring methodologies are specified in the drafted LARPs. Each implementing unit will conduct internal supervision and monitoring to ensure compliance with the provisions of the LARPs. For each subproject, MPW will reach agreement with ADB to a set of supervision milestones, to ensure timely and effective implementation of resettlement activities. An independent agency will be engaged to conduct external monitoring and evaluation. Bi-annual external resettlement monitoring reports will be forwarded directly to both MPW and ADB. C. Indigenous Peoples 152. Afghanistan shall ensure that projects financed under the Facility do not have any indigenous peoples impacts within the meaning of the Safeguard Policy Statement (2009). In the event that project(s) do have any such impacts, Afghanistan shall take all steps required to ensure that the Project complies with the applicable laws and regulations of Afghanistan and the Safeguard Policy Statement For subsequent projects under the investment program, if any adverse impact on indigenous people is observed at their preparation stage, an indigenous peoples planning framework (IPPF) and indigenous peoples plan (IPP) will be prepared by MPW and will proceed in line with SPS (2009). 86

87 VIII. GENDER AND SOCIAL DIMENSIONS 154. MPW PMO will incorporate provisions in civil work contracts that contractors shall (i) comply with Afghanistan s applicable labor laws and related international treaty obligations and not employ child labor, (ii) provide safe work conditions and separate sanitation facilities for male and female workers, (iii) provide equal wage to male and female workers for work of equal value, (iv) provide employment opportunities for women, (v) carry out programs of preventing HIV/AIDS, illicit drugs and human trafficking at workers campsites During project implementation, consultations with the participants listed above will continue in order to disclose the project s progress. Prior to the commencement of civil works, MPW PMO will conduct consultation meetings with the support of the construction supervision consultants and contractors A Gender Action Framework (GAF) has been prepared for the Investment Program, which will be built upon and used to incorporate increased gender mainstreaming activities and indicators to measure progress. The introduction of gender elements in the investment program is intended to complement other ADB or development partner programs or projects seeking to support the role of women in development such as ADB financed RETA 7563: Promoting Gender Inclusive Growth in Central and West Asia Developing Member Countries A Gender Action Plan (GAP) has also been prepared for Tranches 3 and 4. Implementation progress in carrying out the activities listed in the GAP and achieving the targets will be reported in the consultant s quarterly progress reports as well as MPW s quarterly reports. 23 Reports on activities in Afghanistan financed under RETA 7563 are posted here: 87

88 Gender Action Framework (GAF) Objective Activity Indicator Responsibility Tranche 2, Output 2: Strengthened technical and management capacity of the Ministry of Public Works. 1. Women participate in and benefit from transport infrastructure reconstruction and rehabilitation. 1.1 Develop an action plan for incorporating employment options for women in infrastructure project sites and in the Project Management Office (PMO). Equal pay for equal work provision in civil works contracts. At least 10% of position in PMO filled with women Distribute information about employment opportunities for women in project sites where culturally appropriate (i.e., northern part of Afghanistan). Executing Agency (EA) 2. Strengthening the commitment to and capacity of the EA to promote gender equality. 1.2 Ensure sexdisaggregated data collection during socioeconomic studies of detailed resettlement plans. 2.1 Enhancing capacity of line agencies in undertaking gendersensitive measures for road construction. 2.2 Develop one pilot initiative 24 which will improve women s benefits from road construction. Data on female headed households collected. Data on women s access to land and property collected. Data on travel time to reach next health center and school collected. Prioritize constructing road sections which connect communities with health facilities and schools. Constructing bus stops and market facilities along the road alignments close to settlements. Pilot initiative developed which improves women s access to public transportation, or women s access to finance or training to support women s entrepreneurship. EA EA EA, Asian Development Bank (ADB) 24 Financed under ADB RETA 7563: Promoting Gender-Inclusive Growth in Central and West Asia Developing Member Countries. 88

89 Gender Analysis and Action Plan - Tranche 3 (Dar-i-Suf to Yakawlang Road, 178 km) Tranche 4 (Baharak to Eshkashim Road, 108 km) 1. Background Situation of Women in Afghanistan 158. The gender action plan was designed in the following context: In 2013, Afghanistan ranked 148 out of 148 countries on the Gender-related Development Index and 149 out of 152 countries on the Gender inequality Index. This means it is the one of the worst places in the world to be a woman, and the worst in Asia. About 20% of young women aged years in Afghanistan are married. Overall, 15% of women aged years were married before the age of 15, while 46% were married before the age of 18. According to a 2006 study, the majority of parents who married off their daughters by age 15 said they did so for economic reasons. Consequently, adolescent pregnancy and motherhood are a major social and health issue in Afghanistan, with 12% of women age having started childbearing, 8% having had a live birth and 4% pregnant with their first child. By age 19, one-third of women have already started childbearing. Child marriage and early childbearing has serious negative implications for gender empowerment because it is likely to lead to disrupted education, social isolation, reduced acquisition of income generating skills, and reduced social and political agency. The adult literacy rate is very low in Afghanistan (31%) but there are pronounced gender differences nationally, only 17% of women 15 years and over are able to read and write, compared to 45% of men. The corresponding rate for rural women is 10%. Although the level of gender based violence is unclear in Afghanistan, women s attitudes suggest domestic violence is not only high, but expected, wherein 92% of women believe their husband has the right to beat them. While the situation of women has improved a great deal in Kabul, evident by many more women on the streets and involved in civil and economic spheres, in the provinces and remote villages, traditional gender roles remain very rigid, with women s work being largely in the reproductive sphere 25, and men s in the productive and community management spheres. Not surprisingly, only 15.5% of the working-age female population is currently employed in the labor market, against 74.9% of males i.e., a gender gap of more than 50%. Although some Afghan women undertake productive work outside the household compound (predominantly as teachers and health workers in this area) it is not overly common. Women working outside tend to do so in a group such as for planting and harvesting crops or collecting fuel and water. Men and boys generally undertake outside household activities, such as shopping for food, selling of agricultural products etc. If a woman needs to travel far from the house, it is still necessary for her to take a male relative as chaperone (mahram). Even among the employed, the proportion of women who are underemployed is higher than that of men (23% vs 15%). Women are also more likely to be in vulnerable employment. For e.g. 39% of employed women are unpaid family workers compared to 8% of men. In addition, overall percentage of households having access to improved sanitation facilities in Afghanistan is 20% with a large share of population having no access to any toilet facility and using bush or field for defecation. Inadequate sanitation and lack of good hygiene practices are the primary cause of diarrheal diseases throughout Afghanistan, with diarrhea prevalence being 25.4% among children under 5 in Afghanistan, and diarrhea being responsible for 9.7% of deaths among children 1-11 months and 9.3% of deaths among children months. 25 Reproductive in this context means women s unpaid household work, i.e., the reproduction and caring of society s labor force, with activities including the bearing and rearing of children, taking care of the household (cooking. cleaning, maintenance), collecting fuel and water, taking care of the sick and the elderly, and animals kept in the compound, etc. 89

90 2. Gender Profile of the Project Area 159. Tranche 3 (Dar-i-Suf to Yakawlang Road, 178 km): The route will eventually connect the capitals of Bamyan province (Bamyan) and Balkh province (Mazar-e-Sharif) via western Samangan province on the South-North corridor in the Central Highlands of Afghanistan. Presently, the corridor is rehabilitated in its southern portion from the town of Yakawlang going east to the provincial capital of Bamyan. In the northern portion, the road is rehabilitated from Mazar-e-Sharif going south through Samangan province as far as the market town of Dar-i-Suf. The remaining south-north alignment is presently a track navigable by motorcycle and four wheel drive vehicles in some portions during the dry season only. There is no public or private transportation service for the sparse and remote population of the approximately forty rural villages lying in proximity to the proposed road. Access to hospitals or government services currently entail an average of 4 hours travel, much of which is on foot The route is high and mountainous, in some parts following a river valley and in others the side walls of dry valleys. Settlements are generally clusters of houses built using mud brick construction above the proposed road alignment on the hillsides. Fetching water involves walking down the mountainside to the river or spring, then carting the water back up. Most households have no latrine, open defecation is the common practice. District statistics indicate 74% of households in this area have no access to improved sanitation, but actual access is likely to be far less. Inadequate sanitation and lack of good hygiene practices are the primary cause of diarrheal diseases throughout Afghanistan; the time and money required to treat these frequent occurrences place a large economic burden on poor families. Diarrhea alone is responsible for 14% of infant deaths, and over the one year period from October 2011 to September 2012, an average of 751 children under the age of five with acute diarrhea were presented at district health centers in the project districts Average annual income in the project area was just over $1 per day per person. Savings ability was as low as 4%, indicating high vulnerability to economic shocks (illness, accident, and crop or stock loss). Residents along the project road earn their incomes largely from agriculture, and from wages although presumably there is overlap between these two categories. The other category is also high and may be explained by trade in livestock. Animals are an important source of livelihood since they provide almost all protein in the rural diet as well as dung, the principle cooking (45%) and heating (95%) fuel. Much of the work in feeding and maintaining livestock is performed by women. However, shepherding or supervision of grazing animals is often done by children, particularly boys. The main tradable products in the northern reach of the road are melons, dried yoghurt, and rugs Tranche 4 (Baharak to Eshkashim Road, 108 km): The 108 km long Baharak- Eshkashim project road is located in South-Eastern part of Badakhshan province and connects four districts in Badakhshan namely, Baharak, Warduj, Zebak and Eshkashim. About 11.8% of the project road passes through mountainous terrain, 6.8% passes through rock to mountainous terrain, 69.5% passes through rolling terrain and 11.9% passes through flat terrain. The existing road is not vehicle passable and the road surface is mostly semi-rocky and earthen. There are 57 villages within two kilometers of the road alignment from Baharak to Eshkashim via Warduj and Zebak, comprising of 7,299 households (51,808 persons). The average household size within the road influence area is approximately seven members. Less than 1% of these households are headed by women, which is slightly higher than the national average of 0.4% Badakhshan is the one of the least accessible provinces in Afghanistan, with some 47% of the households falling in the bottom quintile of the national remoteness index. More than 40% of households in Badakhshan have a girls primary school and a girls secondary school 90

91 located more than 2 km of their residence (41% and 45% respectively). Access to health care is similarly limited, with more than half the population having to travel over 10 kilometers to get medical attention. Access is further constrained by the lack of a well-developed transport infrastructure, with only 57% of the population having access to roads - of these roads, only 25% are all weather roads able to carry traffic throughout the year. As a consequence, average distance to nearest drivable road in Badakhshan is 19.2 km (compared to a national average of 3.1 km). Transport services are sparse, and mostly available in proximity to urban centers. Lack of access is especially constraining for women. If a woman needs to travel far from the house, she has to take a male relative as chaperone. This also doubles the cost of travel, which further impedes women (especially poor ones) from accessing facilities and services The employment to population ratio in Badakhshan is 43.7%, and similar to the 45.7% nationally. However, the underemployment (22.5%) and unemployment (11.7%) rates are much higher than the national average of 16.8% and 8.2% respectively. A large share of the population is in vulnerable employment - for e.g. unpaid family workers making 15% of the employed and day laborers another 34%). Agriculture is the major source of revenue over half of households in Badakhshan. In addition nearly one out in three households derives income from trade and services, and more than a quarter of households earn income through non-farm related labor. Livestock plays an important role providing the income to more than one in five households, whose feeding and maintenance is performed by women. Women are also involved in agriculture activities, such as germination of seeds, weeding, leveling and dressing of farm land, potato feet cutting and planting, wheat and potato harvesting, wheat threshing and thinning, and drying fruit and vegetables Poverty rate in Badakhshan is 61% with depth of poverty being 24.1%, which makes it one of the poorest provinces in Afghanistan. Per capita monthly total consumption is 1,069AF ($19 per month or approximately $0.60 per day) with a Gini Coefficient of per capita total consumption of Food security is a critical issue, with calorie deficiency (% consuming less than 2,100 calories per day) as 66.3% and depth of calorie deficiency being 23.7%. The road feasibility study report states that a relatively small percentage of farming households in the project influence areas has had a grain surplus and relatively large number (80-90%) have been faced with a grain deficit. Malnutrition of women negatively affects pregnancies and deliveries as well as the health of children In Badakhshan, 10% of women with a birth in the last birth five years were attended by skill birth attendant (compared to 40% nationally). 50% had received at least one skilled antenatal care and around 9% had the delivery in a health facility. According to a survey in 2002, Badakhshan had a maternal mortality rate of 6,500 per 100,000 births (three to four times the national estimates of 1,600 2,200 per 100,000 births at the time), making this area as having the highest rates of maternal mortality in the world, due to the lack of health infrastructure, inaccessible locations, and bitter winters of the province. Over the last decade, maternal mortality rate has declined significantly in Badhkshan but is still almost twice the national average (713 per 100,000 vs 400 per 100,000) % of households in Badakhshan have access to safe drinking water source. Most households have no latrine; open defecation is the common practice. According to AMS 2010, overall percentage of households having access to improved sanitation facilities in Badakhshan is approximately 8% (compared to national average of 20%), while approximately 47% have no access to any toilet facility and use bush or field. Inadequate sanitation and lack of good hygiene practices are the primary cause of diarrheal diseases throughout Afghanistan. In Badakhshan, diarrhea prevalence among children under 5 years of age is 38.1% in Meanwhile, fatality rate among inpatients under age 5 from diarrhea was 2.1% in first quarter of 2012, 1.2% in the first quarter of 2013, and 0.9% in the first quarter of

92 3. Gender Specific Project Impacts and Recommendations 168. In Afghanistan, in the provinces and remote villages such as those found in the project area, traditional gender roles remain very rigid, with women s work being largely home-based and men s in the productive and community management spheres. Although some Afghan women undertake productive work outside the household compound, predominantly as teachers and health workers in this area, it is not overly common. Women working outside the household tend to do so in a group such as for planting and harvesting crops or collecting fuel and water. Men and boys generally undertake outside activities, such as shopping for food, selling of agricultural products etc. If a woman needs to travel far from the house, it is still necessary for her to take a male relative as chaperone (mahram) Therefore, the biggest gender impact of the proposed project will be increased access of women to services available in the larger centers of Bamyan, Mazar-e-Sharif and Badakhshan, particularly health services, while men will benefit largely from access to markets and employment. Given the high fertility rates, high risk of death from childbirth and high incidence of treatable diseases amongst women in project areas, a key gender benefit is decreased time for women to access life-saving medical services. Presently, the average amount of time to reach such services is 4 hours in Bamyan and Mazar-e-Sharif (Tranche 3) and 8 hours in Badakhshan (Tranche 4); based on improved travel times on completed road segments, the new roads will reduce travel time to 2 hours (Tranche 3) and to 3 hours (Tranche 4). Furthermore, an improved road surface will lead to a higher probability of for-hire vehicle services in the area Another obvious entry point to improve the gender impact of the project is in the area of sanitation. Presently, the majority of households in both Tranche 3 and Tranche 4 project areas have no access to improved sanitation. When women have to limit their body functions for reasons of propriety from dawn to dusk, medical problems are common. Where households use buckets or pits for sanitation, it is generally the woman responsible for cleaning. More common than pit latrines is the raised platform, which screens the user but deposits the feces directly on the ground below, for periodic removal, typically by a woman. Dignity notwithstanding, the presence of uncovered human excrement in a housing compound is unhygienic, considering that flies pass from such areas to contaminate food and infect skin sores. Such an environment is a breeding ground for diarrheal disease as well as more serious diseases such as polio. Implementation studies have shown that hand-washing with soap will reduce the incidence of diarrhea up to 48%, safe disposal of feces by 36%, and point-of-use treatment of water by up to 17% For Tranches 3 and 4, an NGO will be hired to conduct a community led total sanitation (CLTS) program in all nearby villages. CLTS is a relatively new methodology in Afghanistan and works by engaging whole communities in understanding the impacts of and alternatives to open defecation, specifically with respect to the transmission of diarrheal diseases, and the costs of such diseases to well-being and household finances. This motivates the community to achieve open defecation free (ODF) status through ensuring that all households have access to a safe latrine and that is consistently used. This is achieved without any subsidies and within the scope of community resources. The achievement of ODF status then serves as an eligibility trigger for each village to access a community infrastructure facility and may even stimulate demand for improved village water supply systems, having raised awareness on such basic health principles. A key feature of the CLTS methodology is the training of family health action groups (FHAGs), typically of women, to raise awareness amongst women, as well as religious and 92

93 community leaders to raise awareness amongst men. This type of capacity building will increase women s knowledge and community agency, an important first step to organizing women to perhaps better influence the choice of community infrastructure in the future Conditional upon attaining ODF status, a village may access a community infrastructure facility managed by the contractor, in order to enhance the benefits of the road project and at the same time, foster good relations with the host communities. Typically communities identify much needed infrastructure, such as water supply systems, access roads, steps or school rooms/clinics, and the contractor constructs them up to a predetermined budget limit. 4. Gender Action Plan for Tranche 3 and 4 Activities Indicators and Targets Responsibility Timeframe Tranche 3 (Dar-i-Suf to Yakawlang Road, 178 km) Output 1: 178 km of Yakawlang to Dar-i-Suf road reconstructed, rehabilitated. and appropriately maintained 1.1 PMO to consider employment of women at least for off-site work, e.g. design office. 1.2 Awareness raising for women on which medical conditions require hospital level treatment and care. Relevant wording in contract documents Time required for women to reach life-saving health services reduced from 4 to 2 hours by 2017 Maternal and infant deaths (not including stillborn) in the area reduced from 41 per annum (data of MoH, Oct 2011-Sep 2012) to less than 21 per annum by 2019 MPW & contractor CLTS consultant Years 1-5 Output 2: Villages from Yakawlang to Dar-i-Suf construct, rehabilitate, and maintain community development infrastructure 2.1 Capacity building of Mullahs, Shura and Family Health Action Groups (FHAG 26 ) to ensure broad community participation. 2.2 Implementation of the Community Led Total Sanitation (CLTS) methodology including: health and hygiene, safe use and storage of domestic water, and improved sanitation. 2.3 Improved health, hygiene, and sanitation practices in every village along the road alignment 2.4 All ODF villages, having met the condition for access to the fund, plan and construct community infrastructure At least 50% of the villages along the road alignment attain 100% open defecation free (ODF) status All households in ODF villages have access to improved sanitation (target 2,180 latrines) Acute under 5 diarrhea rate reduced from average 751 per month (data of MoH, Oct 2011-Sep 2012) to less than 400. Pre- and post-clts Knowledge, Attitude and Practice survey results. Verified female involvement through FHAG in identification of community infrastructure needs in every ODF village CLTS consultant, verification by local authority MoH MIS Community development consultants Year 1 Year 2 Year 5 Year 2 Year 5 26 See description of FHAG in paragraph above. These are formed under the CLTS component by the CLTS consultant yet retain an ongoing role in community health under the direction of the community health worker. 93

94 Activities Indicators and Targets Responsibility Timeframe Tranche 4 (Baharak to Eshkashim Road, 108 km) Output 1: 108 km of Baharak to Eshkashim road reconstructed, rehabilitated. and appropriately maintained 1.1 Contractor is asked to prioritize employment of local labor for road construction, and consider employment of women at least for off-site work, e.g. design office 1.2 Awareness raising for women on which medical conditions require hospital level treatment and care Relevant wording in contract documents Time required for women to reach life-saving health services reduced from 8 to 3 hours by 2019 Female health action groups functional in 50% of villages along the road alignment by 2019 Percentage of pregnant women seeking skilled antenatal care in Badakhshan increased from 50% (2012) to more than 68% by 2019 Contribute to reduction in maternal mortality rate in Badakhshan reduced from 713 per 100,000 (2011) to less than 600 per 100,000 by 2019 Ministry of Public Works (MPW) and contractor CLTS consultant MoH MIS/ Mortality Survey Years 1-5 Output 2: Villages from Baharak to Eshkashim construct, rehabilitate, and maintain community infrastructure 2.1 Capacity building of Mullahs, At least 50% of the villages Year 1 Shura and Family Health Action Groups (FHAG) to ensure broad community participation 2.2 Implementation of the along the road alignment attain 100% open defecation free (ODF) status 100% access to improved sanitation in ODF villages CLTS consultant, verification by local authority MoH MIS/ Year 2 Year 5 Year 5 Community Led Total Diarrhea prevalence among National Sanitation (CLTS) children under 5 in Nutrition Years 1, 5 methodology including: health Badakhshan reduced from Survey and hygiene, safe use and 38% (2013) to less than 32% Pre- and poststorage of domestic water, by 2019 CLTS and improved sanitation Female involvement in Knowledge, 2.3 All ODF villages plan and Attitude and identification of community construct community Practice survey infrastructure needs in every infrastructure ODF village 2.4 Improved health, hygiene, 100% of participants post and sanitation practices in CLTS knowledge attitude and every village along the road practice survey demonstrate alignment improved knowledge of health, hygiene and sanitation practices 94

95 IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 173. The PMO will undertake periodic project performance review under each individual project and for the Investment Program, in accordance with the PPMS to evaluate the scope, implementation arrangements, progress and achievements of objectives of the related project and overall Investment Program. The PMO will prepare and submit to ADB quarterly progress reports for the individual projects. The reports will include a description of physical progress, problems, and difficulties encountered and a summary of financial accounts that will consist of grant or loan expenditures during the period, year to date, and total to date, and include a report on progress of the implementation of mitigation measures as specified in the contracts and environmental management plan. A project completion report will be submitted within three months following completion of each tranche. A facility completion report will be submitted within 6 months after completion of the investment program. A. Project Design and Monitoring Framework DESIGN AND MONITORING FRAMEWORK Table A1.1 Investment Program Design Summary Impact Increased trade and jobs Performance Targets and Indicators By 2022: Collective value of official trade with neighboring countries of Pakistan and Tajikistan is $3.5 billion, or twice the estimated value of $1.7 billion achieved in 2011 Mortality rate of children less than 5 years of age decreases by 10% from 190 per 1000 estimated in 2010 Mortality rate of women in childbirth decreases by 15% from 1600 per 100,000 estimated in 2010 Primary school total enrollment increases by 5% over an estimated level of 4.7 million achieved in 2010 Data Sources and Reporting Mechanisms National socioeconomic statistics from the Central Statistics Office ADB s project performance audit report Border facility records National economic data Assumptions and Risks Assumptions Effective and timely implementation of ANDS and other key ongoing reconstruction and reconciliation programs Continued assistance to complementary interventions from external donors and nongovernment organizations Effective implementation of cross border transport and trade facilitation arrangements between Afghanistan and neighboring countries Risk Deterioration in the security situation Outcome Increased movement of goods and services and better connectivity for people and businesses By 2019: Increased connectivity: Percent of project areas connected to the regional highway network by paved roads increased to MPW and MOTCA records Traffic counts and surveys Socioeconomic surveys Railway inspection reports Assumptions Timely availability of donor and government financing for infrastructure development Systematic selection of roads for improvement to complete the envisaged network 95

96 Design Summary Performance Targets and Indicators 90% from 70% in 2010 Increased average intercity travel speed: On national highway network average speed increased from 35 kph in 2010 to at least 50 kph in program areas Increased availability of inter-city freight and passenger services: Volumes of traffic along project roads increased by 30% from 2011 Travel time to the nearest primary school, healthcare facility, or other essential service in target areas decreased by 25% or 15 minutes from the existing average of 1 hour in 2011 Data Sources and Reporting Mechanisms Assumptions and Risks Continued commitment of the government to further sector reforms Continued procurement of maintenance works under performance-based contracts by MPW Increased availability of transport services following improvement of the priority roads Continued complementary assistance by other development agencies and nongovernment organizations in rehabilitating other economic infrastructure, and provisions for basic social services Risks Lack of buy-in or commitment by MPW to restructure and make required changes in business practices Weak external monitoring of projects Sustainability of investments may be undermined by lack of maintenance Outputs km of reconstructed and rehabilitated regional and national roads By 2019: The international roughness index for project roads less than 5 meters per km, compared with a current estimate of greater than 7 meters per km. MPW Progress Reports MPW asset inventory MPW contract documents Assumptions Timely and properly completed resettlement activities Increased numbers of qualified professionals and firms availability and willing to undertake work in Afghanistan Agreement reached between MPW and ARDS on and work according to a procurement schedule Risks MPW capacity constraints: lack of funds and staff resources for required counterpart funding Poor project design Cost overruns resulting in less work accomplished than designed km of By 2019: Assumptions 96

97 Design Summary constructed railway and stations between Mazar-e-Sharif and Andkhoy Performance Targets and Indicators Railway line meeting the specifications of gauge (1520 mm) Data Sources and Reporting Mechanisms MPW Progress Reports MPW contract documents Assumptions and Risks Timely and properly completed resettlement activities Coordinated effort by interministerial agencies of central government Risks Deterioration of security situation MPW capacity constraints: lack of funds and staff resources for required counterpart funding Cost overruns resulting in less work accomplished than designed 3. Operation and maintenance of 75 km of new railway line, loops and stations between Hairatan and Mazar-e-Sharif Goods transported will increase from 2.2 million tons in 2010 to over 3.2 million tons per year By 2012, railway facilities are maintained as per performance standards by 2012 By 2012, 40 staff trained by the Operator on railway operation and maintenance Government progress reports Railway inspection reports Assumptions Railway tariffs are workable as compared with trucking alternatives Maximum coordinated effort by government inter-ministerial agencies Risk Deterioration of security situation 4. Strengthened capacity of MPW MPW and ARDS jointly handle the procurement of goods and services and recruitment of consultants effectively Organizational restructuring and revised business for MPW-PMO List of counterpart staff who received training and their program details. MPW-PMO audit reports Assumption The government continues to implement the road and rail sector component of ANDS Risk Lack of buy-in or commitment by MPW and other agencies for required institutional restructuring and sector reforms By 2014, the number of claims and variations are reduced by 30% from 2011 Gender action framework and one pilot initiative implemented by Improved transport sector governance Establishment of the road authority and road fund by 2012 Establishment of the rail Updated ANDS and NRIRCP reports Government mandates and decrees establishing new Assumptions Increased availability of qualified professionals and firms willing to undertake work in Afghanistan MPW and ARDS work according 97

98 Design Summary Performance Targets and Indicators authority by 2012 A long term railway development plan developed and reviewed by the government by 2012 Railway legal framework and regulations drafted and reviewed by government agencies by 2012 An asset management system implemented by MPW by 2015 Data Sources and Reporting Mechanisms authorities and delegating responsibilities Government budgets allocating staff and monetary resources to authorities Assumptions and Risks to an agreed upon procurement schedule Risks Inadequate and weak coordination among government agencies Delayed or incomplete institutional strengthening Lack of anticorruption strategy or action plan Delay in transition to new procurement law MPW revises the list of priority transport infrastructure into an updateable living national transport plan by 2015 Activities with Key Milestones Project 1: 1.1 Land acquisition and resettlement fully implemented by December Civil works and supervision consultant contracts awarded by September 2012 and completed by June Capacity building consultants recruited by January 2014, services completed by Afghan staff trained for railway operation and maintenance by December 2012 Project 2: 2.1 Award of civil works contracts by December Completion of civil works by December 2017 Project 3: 3.1 Award of civil works contracts by December Completion of civil works by June 2018 Inputs Investment Program: ADB: $754 million (ADF) AITF: $33 million Government: $18 million Project 1: ADB: $189 million (ADF grant) AITF: $33 million* Government: $10 million * Additional financing for the Hairatan to Mazar-e-Sharif Railway Project Project 4: 4.1 Award of civil works contracts by June Completion of civil works by June 2018 ADB = Asian Development Bank, ADF = Asian Development Fund, ANDS = Afghanistan National Development Strategy, ARDS = Afghanistan Reconstruction and Development Service, km = kilometers, kph = kilometer per hour, MFF = multitranche financing facility; MOTCA = Ministry of Transport and Civil Aviation; MPW = Ministry of Public Works. Source: Asian Development Bank. 98

99 DESIGN AND MONITORING FRAMEWORK Table A1.2 Tranche 1 Design Summary Impact Increased trade and jobs in the project areas Performance Targets and Indicators By 2017: Collective value of official trade with neighboring countries of Pakistan and Tajikistan is $3.5 billion, or twice the 2011 estimated value of $1.7 billion Mortality rate of women in childbirth decreases by 15% from 1600 per 100,000 estimated in 2010 Data Sources and Reporting Mechanisms National socioeconomic statistics from the Central Statistics Office ADB s project performance audit report Border facility records National economic data Assumptions and Risks Assumptions Effective and timely implementation of ANDS and other key ongoing reconstruction and reconciliation programs Continued assistance to complementary interventions from external development partners and nongovernment organizations Primary school enrollment increased by 5% over an estimated level of 4.7 million in 2010 Effective implementation of cross border transport and trade facilitation arrangements between Afghanistan and neighboring countries Risks Deterioration in the security situation Outcome Increased movement of goods and services and better connectivity for people and businesses in the project areas By 2017: Percent of project areas connected to the regional highway network by paved roads increased to 75% from 70% in 2010 On national highway network average speed increased from 35 kph in 2010 to 45 kph in project areas Traffic volumes on project roads increased by 15% from 2011 MPW and MOTCA records Traffic counts and surveys Socioeconomic surveys Railway inspection reports Assumptions Timely availability of donor and government financing for infrastructure development Systematic selection of roads for improvement to complete the envisaged network Continued commitment of the government to further sector reforms Continued procurement of maintenance works under performance-based contracts by MPW Travel time to the nearest primary school, healthcare facility, or other essential service in target areas decreased by 10% or 6 minutes from the existing average of 1 hour in 2011 Increased availability of transport services following improvement of the priority roads Continued complementary assistance by other development agencies and nongovernment organizations in rehabilitating other economic infrastructure, and provisions for basic social services Risks Lack of buy-in or commitment 99

100 Design Summary Performance Targets and Indicators Data Sources and Reporting Mechanisms Assumptions and Risks by MPW to restructure and make required changes in business practices Weak external monitoring of projects Sustainability of investments may be undermined by lack of maintenance Outputs km (Bagramy- Sapary, Jabul Saraj-Nijrab; and Faizabad- Baharak sections) of reconstructed, rehabilitated, and appropriately maintained roads By 2017: The international roughness index of project roads less than 5 meters per km, compared with a current estimate of greater than 7 meters per km MPW progress reports MPW contract documents Assumptions Timely and properly completed resettlement activities Increased numbers of qualified professionals and firms availability and willing to undertake work in Afghanistan Agreement reached between MPW and ARDS on and work according to a procurement schedule Risks MPW capacity constraints: lack of funds and staff resources for required counterpart funding Poor project design Cost overruns resulting in less work accomplished than designed 2. Operation and maintenance of 75 km of new railway line, loops and stations between Hairatan and Mazar-e-Sharif Goods transported will increase from 2.2 million tons in 2010 to over 3.2 million tons per year By 2012, railway facilities are maintained as per performance standards by 2012 By 2012, 40 staff trained by the Operator on railway operation and maintenance Government progress reports Railway inspection reports Assumptions Railway tariffs are workable as compared with trucking alternatives Maximum coordinated effort by government inter-ministerial agencies Risks Deterioration of security situation 3. Strengthened capacity of MPW MPW and ARDS jointly handle the procurement of goods and services and recruitment of consultants effectively List of counterpart staff who received training and their program details. MPW-PMO audit reports Assumptions The government continues to implement the road and rail sector component of ANDS 100

101 Design Summary Performance Targets and Indicators Organizational restructuring and revised business for MPW-PMO By 2014, the number of claims and variations are reduced by 30% from 2011 Data Sources and Reporting Mechanisms Assumptions and Risks Risk Lack of buy-in or commitment by MPW and other agencies for required institutional restructuring and sector reforms Gender action framework and one pilot initiative implemented by Improved transport sector governance Establishment of the road authority and road fund by 2012 Establishment of the rail authority by 2012 A long term railway development plan developed and reviewed by the government by 2012 Railway legal framework and regulations drafted and reviewed by government agencies by 2012 An asset management system implemented by MPW by 2013 Updated ANDS and NRIRCP reports Government mandates and decrees establishing new authorities and delegating responsibilities Government budgets allocating staff and monetary resources to authorities Assumptions Increased availability of qualified professionals and firms willing to undertake work in Afghanistan MPW and ARDS work according to an agreed upon procurement schedule Risks Inadequate and weak coordination among government agencies Delayed or incomplete institutional strengthening Lack of anticorruption strategy or action plan Delay in transition to new procurement law MPW revises the list of priority transport infrastructure into an updateable living national transport plan by 2013 Activities with Key Milestones Inputs 1. Land acquisition and resettlement fully implemented by December 2011 ADB: $189 million (ADF grant) 2. Civil works and supervision consultant contracts awarded by October 2011 AITF: $33 million* and completed by December 2013 Government: $10 million 3. Capacity building consultants recruited by January 2012 services completed by 2014 * Additional financing for the 4. Afghan staff trained for railway operation and maintenance by December Hairatan to Mazar-e-Sharif 2012 Railway Project. 5. MPW will appoint Inspector to evaluate operation and maintenance performance by September 2011 for the remainder of the 2011 calendar year, and by December 2011 years 2012 and 2013 ADB = Asian Development Bank, ADF = Asian Development Fund, ANDS = Afghanistan National Development Strategy, ARDS = Afghanistan Reconstruction and Development Service, km = kilometers, kph = kilometer per hour, MFF = multitranche financing facility, MOTCA = Ministry of Transport and Civil Aviation, MPW = Ministry of Public Works. 101

102 DESIGN AND MONITORING FRAMEWORK Table A1.3 Tranche 2 Design Summary Impact Better connectivity and efficiency of the southern road network with focus on cross border links to Pakistan Performance Targets and Indicators By 2017: Trade with Pakistan increased to $3.40 billion from an estimated value of $1.65 billion in 2011 Increased cross border traffic at the Shkin Angoor-Ada Border Post from 100 trucks per day (2011) to 250 trucks per day Data Sources and Reporting Mechanisms National socioeconomic statistics from the Central Statistics Office ADB s project performance audit report Border facility records National economic data Assumptions and Risks Assumptions Effective and timely implementation of ANDS and other key ongoing reconstruction and reconciliation programs Continued assistance to complementary interventions from external development partners and nongovernment organizations Increased cross border traffic at Torkham Border Post from 1,600 trucks per day (2010) to 2,200 trucks per day Effective implementation of cross border transport and trade facilitation arrangements between Afghanistan and Pakistan Mortality rate of women in childbirth decreases by 15% from 1,600 per 100,000 estimated in 2011 Risks Deterioration in the security situation Primary school enrollment increased by 5% over an estimated level of 4.7 million in 2010 Outcome Rehabilitated and reconstructed sections of national and regional highways By 2015: Reduced travel time along the Paktika Economic Corridor, from border of Pakistan to provincial capital of Sharan, from 7 hours to 3 hours Reduced travel time from Jalalabad to Kabul from 5 hours to 3 hours Reduced travel time from Lashkar Gah to Gereshk from 4 hours to 2 hours MPW and MOTCA records Traffic counts and surveys Socioeconomic surveys Assumptions Timely availability of donor and government financing for infrastructure development Increased availability of transport services following improvement of the priority roads Continued complementary assistance by other development agencies and nongovernment organizations in rehabilitating other economic infrastructure, and provisions for basic social services to foster growth in demand Risks Weak external monitoring of projects Sustainability of investments may be undermined by lack of maintenance 102

103 Design Summary Outputs km (Sapary Jalalabad, Sharan Angoor-Ada, and Chah-e- Anjir Gereshk sections) of reconstructed, rehabilitated, and appropriately maintained national and regional highways Performance Targets and Indicators By 2015: The international roughness index of project roads less than 5 meters per km, compared with a current estimate of greater than 7 meters per km Data Sources and Reporting Mechanisms MPW progress reports MPW contract documents Assumptions and Risks Assumptions Timely and properly completed resettlement activities Increased numbers of qualified professionals and firms availability and willing to undertake work in Afghanistan MPW and ARDS work according to an agreed upon procurement schedule Risks MPW capacity constraints: lack of funds and staff resources for required counterpart funding Poor project design Cost overruns resulting in less work accomplished than designed Insurgents intentionally target contractors and consultants personnel in order to stop implementation of works 2. Strengthened capacity of MPW MPW establishes an asset management system that supports better inventory portfolio management with a focus on maintenance planning MPW and ARDS jointly and effectively handle the procurement of goods and services and recruitment of consultants List of counterpart staff who received training and their program details. MPW PMO audit reports Assumptions The government continues to implement the transport sector component of ANDS Risk Lack of buy-in or commitment by MPW and other agencies for required institutional restructuring and sector reforms Implemented organizational restructuring and revised business plan for MPW Activities with Key Milestones Inputs 1. Land acquisition and resettlement fully implemented by March Civil works and supervision consultant contracts awarded by March 2013 and ADB: $149 million (ADF grant) completed by December 2016 AITF: $87 million 3. Gender action framework implemented by end of 2014 Government: $19 million 4. Capacity building consultants recruited by June 2013 services completed by June 2014 ADB = Asian Development Bank, ADF = Asian Development Fund, ANDS = Afghanistan National Development Strategy, ARDS = Afghanistan Reconstruction and Development Service, km = kilometers, kph = kilometer per hour, MFF = multitranche financing facility, MOTCA = Ministry of Transport and Civil Aviation, MPW = Ministry of Public Works. 103

104 DESIGN AND MONITORING FRAMEWORK Table A1.4 Tranche 3 Design Summary Impact Better connectivity and efficiency through a fully complete North-South Corridor Performance Targets and Indicators By 2019: Increased percentage of households whose primary source of income is derived from trade reaches 13% from 8% (2013) Increased total crop production of major farm products in the project provinces by 35% from 530,000 metric tonnes (2013) Increased year round North-South corridor transit traffic from 600 AADT (2013) to 1,800 Data Sources and Reporting Mechanisms National socioeconomic statistics from the Central Statistics Office ADB s project performance audit report Border facility records National economic data Assumptions and Risks Assumptions Effective and timely implementation of ANDS and other key ongoing reconstruction and reconciliation programs Continued assistance to complementary interventions from external development partners and nongovernment organizations Risk Deterioration in the security situation Reduced maternal and infant deaths in the project area from an estimated 41 per annum (2013) to less than 21 per annum Outcome Rehabilitated and reconstructed sections of national and regional highways By 2017: Reduced travel time from along the entire North-South Corridor from Bamyan to Mazare-Sharif from 17 hours (2013) to 8 hours MPW and MOTCA records Traffic counts and surveys Socioeconomic surveys Assumptions Timely availability of donor and government financing for infrastructure development Increased availability of transport services following improvement of the priority roads Continued complementary assistance by other development agencies and nongovernment organizations in rehabilitating other economic infrastructure, and provisions for basic social services to foster growth in demand Risks Weak external monitoring of projects Sustainability of investments may be undermined by lack of maintenance 104

105 Design Summary Outputs km (Dar-i-Suf Yakawlang section of the North-South Corridor) of reconstructed, rehabilitated, and appropriately maintained national and regional highways Performance Targets and Indicators By 2017: Reduced international roughness index of project roads to less than 5 meters per km, as compared with a current estimate of greater than 7 meters per km Reduced travel time from Dar-i-Suf to Yakawlang from an average of 11 hours (2013) to 3 hours Data Sources and Reporting Mechanisms MPW progress reports MPW contract documents Traffic counts and surveys Assumptions and Risks Assumption Increased numbers of qualified professionals and firms availability and willing to undertake work in Afghanistan Risks MPW capacity constraints: lack of staff resources for required counterpart funding Cost overruns resulting in less work accomplished than designed Insurgents intentionally target contractors and consultants personnel in order to stop implementation of works 2. Community development infrastructure Increased hygienic sanitation practices whereby 50% of the villages along the road alignment attain 100% open defecation free (ODF) status by 2015 Improved sanitation by 2015 wherein 100% of women in 50% of villages within 2 km of the reconstructed road gain access List of counterpart staff who received training and their program details. MPW PMO audit reports Assumption Villages will understand the benefits of improved sanitation and modify behavior to seek attainment of ODF status Risk Lack of buy-in or commitment by villages Increased access to community infrastructure facility for women and men in at least 50% of the villages within 2 km of the reconstructed road by 2019 (baseline in 2013: 0%) Activities with Key Milestones 1.1 Land acquisition and resettlement fully implemented by March Civil works and supervision consultant contracts awarded by June 2014 and completed by June As part of the Community Development component, implementation of the Community- Led Total Sanitation methodology by end of Gender action plan implemented by end of 2016 Inputs ADB: $220 million (ADF grant) Government: $10 million ADB = Asian Development Bank, ADF = Asian Development Fund, AADT = average annual daily traffic, ANDS = Afghanistan National Development Strategy, ARDS = Afghanistan Reconstruction and Development Service, km = kilometer, m = meter, MOTCA = Ministry of Transport and Civil Aviation, MPW = Ministry of Public Works, PMO = Program Management Office. 105

106 DESIGN AND MONITORING FRAMEWORK Table A1.4 Tranche 4 Design Summary Impact Better connectivity and efficiency through a fully complete transport corridor traversing Badakhshan province to Tajikistan Performance Targets and Indicators By 2022: Collective value of trade with Tajikistan is $150 million, or 30% higher than the current estimate of $115 million (2013) Increased year round corridor transit traffic from 650 AADT (2013) to 1,300 Reduced average border crossing time between Afghanistan and Pakistan, Tajikistan, and Uzbekistan by 25% from current estimates of 35, 8, and 10 hours (2013), respectively Reduced maternal mortality rate in Badakhshan province from an estimated 713 per 100,000 (2011) to less than 600 per 100,000 Data Sources and Reporting Mechanisms National socioeconomic statistics from the Central Statistics Office IMF Direction of Trade Statistics ADB s project performance audit report MPW and MOTCA border facility records CAREC Program CPMM data Mortality Surveys/ MOH Management Information System Assumptions and Risks Assumptions Effective and timely implementation of ANDS and other key ongoing reconstruction and reconciliation programs Continued assistance to complementary interventions from external development partners and nongovernment organizations Risk Deterioration in the security situation Outcome Increased movement of goods and services and better connectivity for people and businesses in the project areas By 2019: Percent of provincial areas connected to the national highway network by paved roads increased from 21% (2013) to 42%. Cross border customs clearance procedures and agreements between Afghanistan and Pakistan, Tajikistan, and Uzbekistan effectively implemented MPW and MOTCA socioeconomic surveys MPW and MOTCA traffic counts CAREC Program CPMM data Assumptions Increased availability of transport services following improvement of the priority roads Continued complementary assistance by other development agencies and nongovernment organizations in rehabilitating other economic infrastructure, and provisions for basic social services to foster growth in demand Risks Sustainability of investments may be undermined by lack of maintenance Political factors may delay pace of implementation of revised cross border customs clearance procedures Outputs km (Baharak Eshkashim section of the Faizabad- Eshkashim Road) of By 2018: Reduced international roughness index of project roads to less than 5 meters per km, as MPW progress reports MPW documents contract Assumption Increased numbers of qualified professionals and firms availability and willing to undertake work in 106

107 Design Summary reconstructed, rehabilitated, and appropriately maintained national and regional highways Performance Targets and Indicators compared with a current estimate of greater than 7 meters per km Reduced travel time from Baharak to Eshkashim from an average of 8 hours (2014) to 3 hours increasing access to lifesaving medical services, markets and employment opportunities Data Sources and Reporting Mechanisms MPW and MOTCA traffic counts and surveys Assumptions and Risks Afghanistan Risks MPW capacity constraints: lack of staff resources for required counterpart funding Deterioration in the provincial security situation along the road alignment 2. Community development infrastructure By 2018: 50% of the villages along the road alignment attained 100% open defecation free (ODF) status 100% of women in 50% of villages within 2 km of the reconstructed road have access to sanitation facilities Population living in 50% of the villages within 2 km of the reconstructed road have access to improved community infrastructure (baseline in 2014: 0%) MOH provincial and district health reports MPW PMO reports audit Assumption Villages will understand the benefits of improved sanitation and modify behavior to seek attainment of ODF status Risk Improved sanitation facilities are not routinely maintained or consistently rehabilitated 3. Strengthened capacity of the AfRA 4. Improved efficiency for traffic traversing Afghanistan along CAREC Corridors 5 and 6 By 2018: 40 AfRA staff trained by the Mazar Hairatan Railway Operator in railway O&M The Railway Act describing the legal framework and regulations Afghanistan s railway subsector is endorsed by Cabinet Cabinet approved national railway plan that features the revised list of priority rail transport infrastructure and includes a time bound updating schedule By 2018: Improved BCP equipment and systems on Afghanistan s side of the border with Pakistan, Tajikistan, and Uzbekistan at official BCPs installed Cross border customs AfRA s list of counterpart staff who received training and their training details AfRA progress reports AfRA railway inspection reports Government mandates and decrees establishing new authorities and delegating responsibilities Updated transport sector national master plan Ratified bilateral transit agreements MPW and MOTCA contract documents Assumption Increased availability of qualified professionals and firms willing to undertake work in Afghanistan s burgeoning railway subsector Risk Institutional restructuring may delay envisaged transport sector reforms Assumption Transit traffic is willing to follow the customs procedures at established BCPs Risk Political influences may delay ratification of revised 107

108 Design Summary Performance Targets and Indicators clearance procedures between Afghanistan and Pakistan, Tajikistan and Uzbekistan revised Data Sources and Reporting Mechanisms Assumptions and Risks agreements Activities with Key Milestones km (Baharak Eshkashim section of the Faizabad-Eshkashim Road) of reconstructed, rehabilitated, and appropriately maintained national and regional highways 1.1 Land acquisition and resettlement fully implemented by March Civil works and supervision consultant contracts awarded by Oct 2015 and completed by Dec Community development infrastructure 2.1 As part of the Community Development component, award of the subcontracts for community infrastructure, including the Community-Led Total Sanitation methodology, by end of Gender action plan implemented by end of Strengthened capacity of the AfRA 3.1 Ratification of the Railway Act by end of Workshops for training of trainers and training of AfRA staff conducted in 2017 and 2018, preceded by a training needs assessment in Consultant recruitment in policy advisory positions in AfRA completed by end Improved efficiency for traffic traversing Afghanistan along CAREC Corridors 5 and Procurement of BCP equipment by end of Consultant recruitment to undertake studies on cross-border movement and border crossing procedures by end 2016, and completed by mid Inputs ADB: $109 million (ADF grant) EU: $21 million Government: $16 million AADT = average annual daily traffic, ADB = Asian Development Bank, ADF = Asian Development Fund, AfRA = Afghanistan Railway Authority, ANDS = Afghanistan National Development Strategy, BCP = border crossing point, CAREC = Central Asia Regional Economic Cooperation, CPMM = corridor performance measurement and monitoring, EU = European Union, IMF = International Monetary Fund, km = kilometer, MOH = Ministry of Health, MOTCA = Ministry of Transport and Civil Aviation, MPW = Ministry of Public Works, O&M = operations and maintenance, ODF = open defecation free, PMO = Program Management Office. 108

109 B. Monitoring 174. Project Performance Monitoring System. MPW will establish a project performance monitoring system (PPMS) for the Facility within six months of the Effective Date and collect baseline data for performance monitoring. It will develop a Project Performance Monitoring System. 27 The key indicators and assumptions outlined at the impact and outcome levels in the project design and monitoring framework will be the primary data required for analysis. The PMO is responsible for daily monitoring, reporting, and evaluating the progress for implementing the project, and maybe tasked to develop the PPMS Based on guidance provided by ADB and previous projects, MPW has prepared a systematic procedure of recording and analyzing project related data for monitoring and reporting performance of ongoing projects to its stakeholders. MPW will use the same procedure, with modifications where necessary, to monitor and report to ADB on the performance of the projects. The reports will contain baseline values of indicators, targets, and milestones corresponding to the expected impacts, outcomes, outputs, and activities identified in the design and monitoring framework, including special features and other relevant measures agreed between ADB and MPW The PMO, with the assistance of the consultants supervising the works in each project will collect baseline data and other information during implementation. Thereafter, it will analyze data once every 12 months, and include the results of the analyses and corrective measures (if any) taken to reverse negative trends and impacts in MPW s quarterly report to ADB. ADB review missions will discuss these reports and actions taken by MPW to ensure that all the targets and milestones are met Compliance monitoring. The grant covenants on policy, legal, financial, economic, environmental, social, labor standards and others will be monitored regularly through various reports (monthly progress reports, quarterly progress reports, and annual reports), and discussion during review missions Safeguards monitoring. The monitoring and reporting of the activities identified in the environment and resettlement action plans is discussed in Section VII Gender and social dimensions monitoring: Though anticipated impacts of Project 1 on people s livelihoods around the construction sites are estimated as not serious, MPW will be responsible for monitoring closely the contractors compliance with terms to be on the civil works contract of conducting education activities for preventing HIV/AIDS, human traffic and illicit drugs and of creating gender-mainstreamed employment environments at the construction sites. Such activities will be reported by MPW to ADB in regular progress reports. 28 For Tranche 3, GAP implementation progress will be reported in MPW s quarterly progress reports. 27 ADB's project performance reporting system is available at: 28 ADB's Handbook on Social Analysis: A Working Document, is available at: Guide to Consultation and Participation: and, CSO Sourcebook: A Staff Guide to Cooperation with Civil Society Organizations: 109

110 C. Evaluation 180. ADB will field at least two review missions annually to discuss implementation progress and assess the project implementation, including procurement, civil works, financing status, and environmental and social safeguards based on quarterly progress reports A midterm review mission will be carried out two years after each grant or loan becomes effective. The midterm review will focus on: (i) implementation progress of civil works and consulting services for institutional reform and restructuring; (ii) performance of consultants and contractors; (iv) status of compliance with the understandings in the framework financing agreement (FFA) and the covenants in the loan agreement; and (v) the need for any midcourse changes in the scope or schedule of the tranche projects to ensure full achievement of its impact Within 6 months of physical completion of a respective tranche project, MPW will submit a project completion report to ADB. 29 D. Reporting 183. MPW will provide ADB with: (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions; (c) updated procurement plan and (d) updated implementation plan for next 12 months; and (iii) a project completion report within six months of physical completion of the project. To ensure projects continue to be both viable and sustainable, project accounts and MPW s project accounts and MPW s audited financial statements, together with the associated auditor's report, should be adequately reviewed The PMO will maintain, for each project, records and accounts required to identify: (i) goods, works, plant, equipment and services procured; (ii) funds received from ADB and MOF; and (iii) expenditures incurred. Annual financial audits will be performed by the Office of the Auditor General of Afghanistan ( OAG ). In instances when OAG is unable to undertake the financial audits on time, MPW will engage a private firm of auditors. Within six months after the end of each fiscal year, MPW will submit to ADB the audited project accounts and the auditor s report for each project, including separate opinion on the use of the imprest account and the statement of expenditure procedures MPW will also engage specialists to conduct technical audits of civil works contracts, consulting services contracts, and other activities funded by the Investment Program such as O&M activities. Technical audit reports will be submitted to ADB within one month after completion of the relevant project. The PMO will also prepare, and submit to ADB, summary quarterly reports on the overall performance of each component of each Project. The reports will include information on physical progress, past and projected disbursements in the following quarter, implementation of social and environment safeguards, problems (if any) encountered, actions taken, and activities planned in the following quarter. Format and contents of the report will be described in detail in the Facility Administration Memorandum, which will be updated as required during the Investment Program. For both financial and technical audits, MPW will select and engage independent external auditors using the QCBS or QBS method in 29 Project completion report format is available at: Sector-Landscape.rar 110

111 accordance with ADB s Guidelines on the Use of Consultants unless agreed otherwise in the procurement plan MPW will perform a final analysis of related primary and secondary data on impacts and outcomes within 1 month of completion of each project. The results of this analysis will be included in the Recipient s project completion report (PCR), which will be submitted to ADB within three months of completion of each project. These results will be verified by ADB and reported in its PCR on each corresponding project. E. Stakeholder Communication Strategy 187. MPW will ensure that the Investment Program is implemented with active participation of all national stakeholders, using participatory practices, and consultation will continue throughout implementation of the Investment Program. Disclosure of relevant information to these stakeholders will continue throughout implementation of the Investment Program. Project Documents Means of Responsible Frequency Audience(s) Communication Party Project Information ADB s website ADB Quarterly updating General Public Document (PID) Facility Financing ADB s website ADB Always available online General Public Agreement (FFA) Loan Agreement ADB s website ADB Always available online General Public Reports and Recommendations of the President (RRP) ADB s website ADB Posted within 2 weeks of loan approval; Always available online General Public Environmental Impact Assessment Reports (EARF and IEE) Land Acquisition and Resettlement Reports (LARF and LARP, if required) Procurement requirements Consulting services requirement ADB s website ADB s website ADB website for procurement notice (ACN/SPN), invitation for bids (IFB), Local newspaper advertisement ADB website for recruitment notice (CSRN) for expression of interest ADB website for list of shortlisted firms Request for proposals, public opening MPW, ADB IEE or EIA and EARF posted on the websites before project appraisal; Documents always available online at ADB and PR s websites; EMP updated regularly MPW, ADB LARPs posted before contract awards; Document always available online at ADB and PR s websites MPW, ADB Available online (current and archive) General Public, project-affected people General Public, project-affected people General public, potential civil works contracting firms MPW When required General public, consulting firms ADB Always available General public, consulting firms MPW General public, consulting firms 111

112 Project Documents Facility Administration Memorandum Safeguard Monitoring Reports Audited Project Financial Statements and Auditor s Report Means of Responsible Frequency Audience(s) Communication Party ADB s website ADB After loan negotiations General Public ADB s website ADB Routinely disclosed, no specific requirements ADB s website ADB 30 days after their receipt from MPW General Public, project-affected people in particular General Public ADB=Asian Development Bank, ACN= advance contracting notice, EARF = environmental assessment and review framework, CSRN = consulting services recruitment notice, FFA = framework financing agreement, IEE = initial environmental examination, IFB = invitation for bids, MPW = Ministry of Public Works, PID = project information document, RRP = Report and Recommendation of the President, SPN = specific procurement notice. 112

113 X. ANTICORRUPTION POLICY 188. MPW will establish eligibility criteria for persons serving on bid evaluation committees and require full disclosure of relevant interests and any potential conflict of interests. Additionally, MPW will engage private firms to conduct technical audits of randomly selected works contracts within 12 months of commencement of the contract and six months prior to MPW taking over the project site from the contractor ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the investment program. 30 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency, implementing agency and all investment program contractors, suppliers, consultants and other service providers as they relate to the investment program. Individuals/entities on ADB s anticorruption debarment list are ineligible to participate in ADBfinanced activity and may not be awarded any contracts under the investment program To support these efforts, relevant provisions are included in the framework financing agreement, grant agreements and the bidding documents for the investment program. 30 Available at: 31 ADB's Integrity Office web site is available at: 113

114 XI. ACCOUNTABILITY MECHANISM 191. People who are, or may in the future be, adversely affected by the projects under the investment Program may address complaints to ADB, or request the review of ADB's compliance under the Accountability Mechanism People may initially course their complaints or queries through their local government and/or communities. In case the government and/or communities cannot settle, they can then forward to the Grievance Redress Committee explained at EARF and LARF respectively. Likewise, the public may contact the ADB Afghanistan Resident Mission (AFRM). 32 For further information see: 114

115 XII. RECORD OF FAM CHANGES FAM Version Created Date Revision Date Reasons for Change Main Contents of Change V June 2011 NA Initial NA V August 2011 After negotiations Editorial, covenants, procurement plan V2.0 3 September 2012 Preparation of Tranche 2 processing Table 2.2 Program Readiness Activities Tranche 2 added Tables 2.3, 2.4, and 2.5 added Table 2.6 updated Table 4.2 updated Table 4.3C and 4.3D added Tables 4.12, 4.13, and 4.15 added (Detailed Costs Estimates for Tranche 2) Figure 4.3 Tranche 1 Contracts Awarded and Disbursements S-curve updated Figure 4.3 Tranche 2 Contracts Awarded and Disbursements S-curve added p. 61 Procurement Plan for Tranche 2 added p. 87 DMF for Tranche 2 added Attachments 1, 2, 3, and 4 updated to reflect Tranche 2 procurement V June 2013 Preparation of Tranche 3 processing Table 2.2 Program Readiness Activities Tranche 2 updated Table 2.3 Program Readiness Activities Tranche 3 added Tables 2.3, 2.4, 2.5, 2.6, 2.7, and 2.8 renamed 115

116 FAM Version Created Date Revision Date Reasons for Change Main Contents of Change Table 2.7 added Table 4.1 updated Table 4.2 updated Table 4.4E added Tables 4.12, 4.13, and 4.15 added (Detailed Costs Estimates for Tranche 3) Figure 4.1 Tranche 1 Contracts Awarded and Disbursements S-curve updated Figure 4.2 Tranche 2 Contracts Awarded and Disbursements S-curve updated Figure 4.3 Tranche 3 Contracts Awarded and Disbursements S-curve added p.61 Procurement Plan for Tranche 3 added p.18 DMF for Tranche 2 added Gender Action Plan added Previous attachments 1, 2, 3, and 4 deleted related to Tranche 2 procurement planning Attachment 1 for Tranche 3 PMSC procurement added and previous attachments 5 and 6 renumbered V October 2014 Preparation of Tranche 4 processing Table 2.4 Program Readiness Activities Tranche 4 added Tables 2.5, 2.6, 2.7, 2.8 updated, and Table 2.9 added Table 2.10 renamed and 116

117 FAM Version Created Date Revision Date Reasons for Change Main Contents of Change updated Table 4.1, 4.2 updated Table 4.3F and 4.3G added Tables 4.16, 4.17, 4.18 and 4.19 added Figure 4.1, 4.2, 4.3 updated, and Fig 4.4 added Financial Management Assessment updated (part A of section V) Procurement Plan for Tranche 4 added DMF for Facility updated DMF for Tranche 4 added Gender Analysis and Gender Action Plan updated and added to for Tranche 4 Attachment 1 updated for Tranche 4 Attachment 2 revised to reflect Tranche 4 Attachment 5 related to Tranche 3 deleted New attachments 5, 6, 7 and 8 related to Tranche 4 added 117

118 Attachment 1 DETAILED PROCUREMENT SCHEDULE FOR SUBPROJECT 1 (BAHARAK TO ESHKASHIM ROAD) 1.1 Key milestones for civil work contract No. Activity Calendar Completion Cumulative Days Date Days 1 Draft Bidding Document (BD) Preparation Dec GPN & IFB/Preparation (GPN upload on Dec Approval of Draft BD by ADB, MPW- Prior Review Jan Completion of BD Feb Clearance and approval of BD by MPW 5 23-Feb Submit to ADB for Approval 4 27-Feb Issue Bid Documents to Interested Contractors 6 05-Mar Receive bids and Opening of Tech Qualifications May Post Qualification &Technical Evaluation by MPW Jun Clearance and approval by EA's Bidding Committee 9 17-Jun ADB's Comments and No objection of the technical evaluation Jul Opening of Price Bids Jul Overall Evaluation Report by MPW Aug Clearance and approval by MPW Aug Forward Overall Evaluation Report with Recommendations to ADB including Draft Contract Sep ADB's Comments and No objection Sep Issuance of Letter of Acceptance to Contractor and forwarding Contract Agreement Sep Technical Meeting with Contractor 5 03-Oct Contractors Submits Performance Security Oct Contract Signing 7 20-Oct Contract approval by MPW Nov NTP and submit copy of Contract to ADB 9 13-Nov Mobilization Nov ADB = Asian Development Bank, ARDS = Afghanistan Reconstruction Development Services, BD = Bid Documents, EA = Executing Agency, GoA = Government of Afghanistan, GPN = General Procurement Notices, IFB = Invitation for Bids, MPW = Ministry of Public Works, NTP = Notice to Proceed, 118

119 Attachment Key milestones for project management and construction supervision consulting services No. Activity Calendar Completion Cumulati ve Days Date Days 1 Publication of EOI in websites of MOF, MPW and ADB, local Newspaper, ARDS s website, etc Dec Receipt of EOI Jan SL & RFP Submission to ADB (Submission No.1) by EA Jan ADB Approval of RFP & SL Feb Issue RFP to short listed Firms by MPW Mar Receipt of Proposal (Technical and Financial) Apr Submission of technical evaluation and submission No.2 to ADB May ADB's approval of technical evaluation May Issue of notice of public opening financial proposal 6 31-May Public opening of financial proposal by MPW 7 07-Jun Overall ranking and approval of the MPW Jun Submission No.3 to ADB Jul ADB's Approval of the final ranking, MPW to notify the first ranked firm to prepare for visa etc. subject to ADB Jul final approval 14 MPW s issuance of invitation for contract negotiation 7 02-Aug Notification for contract Negotiations 7 09-Aug Negotiation Period Aug Submit minute of negotiations & draft contract (Submission No.4) to ADB 6 29-Aug ADB's approval of contract 4 02-Sep Signing of Contract 4 06-Sep Contract approval by MPW 7 13-Sep MPW s issuance of Notice to Proceed 7 20-Sep Consultant's Mobilization Sep ADB = Asian Development Bank, EA = Executing Agency, EOI = Expression of Interest, GoA = Government of Afghanistan, IFB = Invitation for Bids, MOF = Ministry of Finance, no. = number, NTP = Notice to Proceed, MPW = Ministry of Public Works, RFP = Request for Proposal, SL = short listing 119

120 Attachment 2 Updated Resettlement Framework November 2012 AFG: Transport Network Development Investment Program Prepared by Ministry of Public Works, Islamic Republic of Afghanistan for the Asian Development Bank (ADB) The land acquisition and resettlement framework is a document of the borrower. The views expressed herein do not necessarily represent those of ADB s Board of Directors, Management, or staff, and may be preliminary in nature. 120

121 121 Attachment 2

122 CURRENCY EQUIVALENTS (as of 5 November 2012) Currency Unit Afghani (AF) AF1.00 = $ $1.00 = AF ABBREVIATIONS ADB Asian Development Bank AH affected household AP affected person CSC - construction supervision consultant DDT - due diligence team DMS detailed measurement survey EA Executing agency EMA external monitoring and evaluation agency IOL inventory of losses IPSA - initial poverty and social assessment km kilometer LAL Land Acquisition Law LAR land acquisition and resettlement LARF land acquisition and resettlement framework LARP land acquisition and resettlement plan M&E monitoring and evaluation MAIL Ministry of Agriculture, Irrigation, and Livestock MFF multitranche financing facility MOF - Ministry of Finance MPW Ministry of Public Works NGO non-government organization PFR Periodic Financing Request PMO Project Management Office ROW right-of-way SES socio-economic survey

123 TABLE OF CONTENTS Page Updated Resettlement Framework 120 I. introduction 124 II. LAR Related Program Processing Requirements 124 III. Indigenous Peoples and Vulnerable Groups 125 IV. LARP Preparation and Implementation 125 V. Objectives, Legal and Policy Framework and Entitlements 126 A. Objectives 126 B. Afghanistan s Legal Framework on Land Acquisition 126 C. The ADB Safeguard Policy 127 D. Identification of Gaps between ADB Policy and Afghanistan s Law 128 VI. The Investment Program s Compensation Eligibility and Entitlements Framework 130 A. Eligibility to Compensation and Rehabilitation 130 B. Compensation and Rehabilitation Entitlements 131 C. Land Valuation 134 VII. Institutional Arrangments AND Implementation 134 VIII. Consultation and Information Disclosure 139 IX. Grievance Redress Mechanism 139 X. Budget and Financing 140 XI. Monitoring and Evaluation 141 A. Internal Monitoring 141 B. External Monitoring 141

124 I. INTRODUCTION 1. The Islamic Republic of Afghanistan (Afghanistan), with the Ministry of Public Works (MPW) as the executing agency (EA), is requesting financial assistance of the Asian Development Bank (ADB) to implement the Transport Network Development Investment Program (the Investment Program). Funding will be provided through a multi-tranche financing facility (MFF) comprising discrete projects to be implemented sequentially over five years under three or four tranches. The Investment Program includes physical components (i.e., transport infrastructure development) most of which will involve significant Land Acquisition and Resettlement (LAR) impacts. 33 Project 1 of the Investment Program has been classified by ADB as Category A for resettlement. The five priority roads identified for funding under the Investment Program, which are each likely to involve some degree of LAR impacts, are: Faizabad Eshkashem (156 km) Kabul Jalalabad (156 km) Jabul Saraj Nijrab (51 km) Lashkar Gah Gereshk (35 km) Dar-i-Suf Yakawlang (182 km) 2. This updated Land Acquisition and Resettlement Framework (LARF) was prepared by MPW to detail mechanisms, procedures and compensation entitlements for planning/implementing LAR tasks for relevant projects under the Investment Program. The LARF in English will be posted on the ADB website and it will also be translated into Dari and disclosed on the MPW website. II. LAR RELATED PROGRAM PROCESSING REQUIREMENTS 3. Based on ADB procedures for MFFs, the Investment Program appraisal is carried out together with the appraisal of the first tranche of subprojects, collectively referred to as Project 1. The following tranches will be appraised once the EA sends to ADB a Periodical Financing Request (PFR) accompanied by the final documents and technical studies for each subproject under the respective tranche. 4. LAR tasks involved in the approval and implementation of the MFF as a facility and each tranche will require the preparation of the following documents: (i) (ii) A LARF for the MFF, as a facility, applicable to all subprojects implemented under the Investment Program. The LARF will be reviewed, if necessary updated, and submitted for ADB approval at least annually, and at the start of preparing PFRs for each subsequent tranche under the MFF. An Initial Poverty and Social Assessment (IPSA) for each tranche indicating LAR impacts, magnitude, and type and likelihood of impacts on Indigenous Peoples (IP). 33 According to ADB OM/F1 (March 2010), involuntary resettlement impacts are considered significant if 200 or more people will experience major impacts, which are defined as: (i) being physically displaced from housing, or (ii) losing 10% or more of their productive assets (income generating).

125 Attachment 2 (iii) The LARP will include detailed compensation budgets and implementation schedules linking LAR tasks to the initiation of civil works. 5. Based on ADB policy and practice, the appraisal of the MFF and each tranche, and subsequent approval for subproject implementation will be based on the following LAR-related conditions: (i) (ii) (iii) (iv) MFF and Project 1 appraisal: Conditional to the preparation and disclosure of: a) LARF acceptable to ADB and Government; b) IPSA; and c) LARPs acceptable to ADB and Government for Project 1 subprojects requiring LAR. Approval of PFR for following tranches: Conditional to: a) LARF review, update, re-disclosure, and b) preparation and disclosure of LARPs consistent with the revised LARF and acceptable to ADB and Government for each tranche subproject with LAR. Implementation Start of Contract (construction) for subprojects with LAR impacts: Conditional to the finalization and disclosure of implementation-ready LARPs acceptable to ADB and reflecting final impacts, affected person (AP) lists, and compensation rates. Initiation of physical civil works in subproject sections with LAR Impacts: Conditional to the full implementation of the relevant LARP including full delivery of compensation and rehabilitation. Such a condition will be clearly spelled out in the text of the civil works contract. III. INDIGENOUS PEOPLES AND VULNERABLE GROUPS 6. No impact on Indigenous Peoples (IPs) is expected for the Investment Program. Special attention will be given to identifying and addressing the needs of disadvantaged groups such as the landless, the impoverished, and female-headed households through measures included in the LARP to try and improve (over and above cash compensations and restoration of) their livelihoods. IV. LARP PREPARATION AND IMPLEMENTATION 7. LARP preparation will be integral part of the preparation of tranche subprojects with LAR starting with impact screening tasks and ending with a readily implementable LARP based on detailed design. LARP preparation will entail the execution of: a) a Detailed Measurement Survey (DMS) of all land and non-land impacts; b) a census of all affected households (AHs) and affected persons (APs); c) a valuation of all affected assets and a LAR budget, and; d) a socio-economic survey (SES) of the AHs based on a 20% statistical sample LARP preparation and implementation process. LARPs for Project 1 were prepared by the project preparation consultants. LARPs for following tranches will be prepared by the detailed design consultants. LARP implementation will be overseen by the supervision consultants. LARP preparation and implementation will follow the process detailed below: 34 Detailed measurement survey (DMS) and census include: i.) a full inventory/measurement of all land/other items losses including buildings, crops, trees, and income; ii.) an assessment of unit replacement values for each affected item/loss; iii.) identification of each AH/AP by gender, age and ethnic affiliation. 125

126 Attachment 2 (a) LARP preparation. This phase will be carried out in parallel with the preparation of the subproject feasibility study (See Annex A for a standard outline of a LARP). (b) LARP review and finalization. This phase will be carried out during detailed design preparation and will include eventual updates of impacts (AP data) and revision of compensation rates. Contracted construction activities will initiate after review and final LARP approval. (c) LARP implementation. This phase will start after the final LARP is approved and will be concluded with the provision of due compensation to all AHs. (d) Civil works implementation. In general, civil works will start only after all AHs are compensated and a compliance report is prepared by the external monitoring and evaluation agency (EMA). However, if a road has sections without impacts and with sufficient length to economically justify construction, civil works for these sections may be initiated immediately after the beginning of the construction phase of the contract. In these cases, the absence of impacts will have to be demonstrated by an ad hoc due-diligence report. V. OBJECTIVES, LEGAL AND POLICY FRAMEWORK AND ENTITLEMENTS A. Objectives 9. This LARF combines existing legal framework and procedures for land acquisition in Afghanistan and the involuntary resettlement safeguards stipulated in ADB Safeguards Policy Statement (2009). B. Afghanistan s Legal Framework on Land Acquisition 10. There is no country specific resettlement policy in Afghanistan. A comprehensive land policy was approved in 2007 by the Cabinet, but it has yet to be fully operationalized. Ratified in early 2004, the new Afghan Constitution has three articles closely related to compensation and LAR. For public interest purposes, such as construction of public infrastructure and acquisition of land with cultural or scientific values, land of higher agricultural productivity, or large gardens, the Law for Appropriation of Property for The Public Welfare in Afghanistan (commonly referred as the Land Acquisition Law (LAL) provides that: The acquisition of a plot or part of it for public purpose is decided by the Council of Ministers and is compensated at fair value based on current market rates (Section 2). The acquisition of a plot or part of it should not prevent the owner from using the rest of the property or hamper its use. If this happens, the whole property will be acquired (Section 4). The right of a land owner or user will be terminated three months prior to start of civil works and after proper compensation to them has been made. The termination of the right of landlords and land users would not affect their rights on collecting their last harvest from the land, except when there is emergency evacuation (Section 6). In case of land acquisition, the following factors shall be considered for compensation: value of land; value of houses and buildings; value of trees, crops and other assets on land (Section 8). The value of land depends on the category and its geographic location (Section 11). 126

127 Attachment 2 A person whose residential land is subject to acquisition will receive a new plot of land of the same value. He has the option to get residential land or a house on government property in exchange, under proper procedures (Section 13). If a landowner so wishes his affected plot can be swapped with unaffected government land. If the new plot is worth less than the old the difference will be reimbursed to the owner (Section 15). The values of orchards, vines and trees on land under acquisition shall be determined by the competent officials of the local body (Section 16). When a property is evaluated at the current rate at the locality concerned, the owner or his representative must be present at the time of measuring and evaluation of property. It is Afghan practice to recognize traditional land rights. Compensation and rehabilitation will be provided before the land is acquired. C. The ADB Safeguard Policy 11. The ADB Safeguard Policy Statement (2009), applies to losses due both to physical and economic displacement caused by involuntary acquisition of land and is based on the following basic principles: Involuntary resettlement should be avoided or wherever feasible Where population displacement is unavoidable, it should be minimized by providing viable livelihood options. Replacing what is lost: If individuals or a community must lose all or part of their land, means of livelihood, or social support systems, so that a project might proceed, they will be compensated and assisted through replacement of land, housing, infrastructure, resources, income sources, and services, in cash or kind, so that their economic and social circumstances will be at least restored to the pre-project level. All compensation is based on the principle of full replacement cost. The calculation of full replacement cost will be based on the following elements: (I0 fair market values; (ii) transaction costs; (iii) interest accrued; (iv) transitional and restoration costs; and (v) other applicable payments. Each involuntary resettlement is conceived and executed as part of a development project or program. ADB and executing agencies or project sponsors, during project preparation, assess opportunities for affected people to share project benefits. The affected people need to be provided with sufficient resources and opportunities to reestablish their livelihoods and homes as soon as possible, with time-bound action in coordination with the civil works. The affected people are to be fully informed and closely consulted. Affected people are to be consulted on compensation and/or resettlement options, including relocation sites, and socioeconomic rehabilitation. Pertinent resettlement information is to be disclosed to the affected people at key points, and specific opportunities provided for them to participate in choosing, planning, and implementation options. Grievance redress mechanisms for affected people are to be established. Where adversely affected people are particularly vulnerable groups, resettlement planning decisions will be preceded by a social preparation phase to enhance their participation in negotiation, planning, and implementation. Social and cultural institutions: Institutions of the affected people, and, where relevant, of their hosts, are to be protected and supported. Affected people are to be 127

128 Attachment 2 assisted to integrate economically and socially into host communities so that adverse impacts on the host communities are minimized and social harmony is promoted. No formal title. Indigenous groups, ethnic minorities, pastoralists, people who claim for such land without formal legal rights, and others, who may have usufruct or customary rights to affected land or other resources, often have no formal legal title to their lands. The absence of a formal legal title to land is not a bar to ADB policy entitlements. APs who neither have formal legal rights nor recognized or recognizable claims to land should be compensated for all non-land assets and for other improvements to the land. Identification: Affected people are to be identified and recorded as early as possible in order to establish their eligibility through a population record or census that serves as an eligibility cutoff date, preferably at the project identification stage, to prevent a subsequent influx of encroachers or others who wish to take advantage of such benefits. The Poorest: Particular attention must be paid to the needs of the poorest affected people, and vulnerable groups that may be at high risk of impoverishment. This may include those without legal title to land or other assets, households headed by females, the elderly or disabled and other vulnerable groups, particularly indigenous peoples. Appropriate assistance must be provided to help them improve their socioeconomic status. The full resettlement costs are to be included in the presentation of project costs and benefits. This includes costs of compensation, relocation and rehabilitation, social preparation and livelihood programs as well as the incremental benefits over the without project situation (which are included in the presentation of project costs and benefits). The budget also includes costs for planning, management, supervision, monitoring and evaluation, land taxes, land fees, and physical and price contingencies. Where loans include subprojects, components or investments prepared only after project approval and loans through financial intermediaries that are likely to cause involuntary resettlement, sufficient contingency allowance must be allocated for resettlement prior to approval of the loan. Similarly, resettlement plans should also reflect the timeframe for resettlement planning and implementation. Eligible costs of compensation: Relocation and rehabilitation may be considered for inclusion in ADB loan financing for the project, if requested, to assure timely availability of the required resources and to ensure compliance with involuntary resettlement procedures during implementation. Compensation and rehabilitation is to be provided before the land is acquired. D. Identification of Gaps between ADB Policy and Afghanistan s Law 12. The Land Acquisition Law (LAL) of Afghanistan and ADB policy diverges on some key points on compulsory acquisition of land. The LAL does not require adequate consultation with affected parties; it simply requires that declaration and notice be given about temporary use of land or acquisition or resumption of land (lease) and the purposes for which it is required. Nor does the LAL require preparation of a plan documenting the process, consultations undertaken with APs, or any specification of procedure for the acquisition and compensation. Finally, the LAL does not entitle to compensation APs without title nor provides compensation for income losses caused by LAR. Table 1 summarizes the differences between the LAL and ADB safeguards, and identifies the resolutions taken for this Program to reconcile the gaps. 128

129 Attachment 2 Table 1: Comparison of ADB s Safeguards Policy Statement of 2009 and LAL of Afghanistan ADB SPS 2009 Land Acquisition Law (LAL) Remarks/Agreed Reconciliation Measures National legislation does not provide for public consultation. Affected persons (APs) are to be fully informed and consulted on compensation options. APs should be compensated for all their losses at replacement cost. Land acquisition and resettlement (LAR) for public interest is to be compensated based on equal/fair value according to current market rates. In case of residential land, land for land is offered. Affected crops and trees will be valued by the competent authorities. National legislation does not provide for public consultation. This Land Acquisition and Resettlement Framework (LARF) provides for consultation and information dissemination. The LARF specifies that affected land will be compensated at replacement cost, free of transaction cost, while buildings/structures are compensated without deducting for depreciation. Crops or trees will also be compensated in cash at replacement rates. Lack of formal title should not be a bar to compensation/rehabilitation. APs should be timely compensated. APs should be compensated and/or assisted, to guarantee at least the maintenance of their pre-project livelihood level. Requires the establishment of a grievance redress mechanism to receive and facilitate the resolution of APs concerns about displacement and other impacts Although not clearly stipulated in law, in practice, traditional land rights are recognized. However, those without formal or traditional land rights are not entitled compensation for non-land assets Land owners/users rights on a plot will be terminated three months prior to start of civil works and after compensation is given. The termination of the owner/user rights will not affect the rights to collect the last harvest except in the case of an emergency. Compensation at replacement rate will be given for land, house, crops, or trees losses. Compensation for income losses/relocation costs is not considered. No specific requirements for the establishment of project-specific grievance redress mechanism This LARF provides compensation at replacement cost for titled and customary users, and rehabilitation for non-title holders. This LARF provides for crops compensation whether they have been harvested or not to avoid civil works delays and pressures on land users to harvest a crop before it is fully ripe. Land users harvesting their crops after notification of the land occupation date will not lose any part of their due compensation. General rehabilitation for income losses and for relocation costs will be given if these impacts occur. A grievance redress mechanism shall be established and operationalized as part of LARP and project implementation. 129

130 Attachment 2 VI. THE INVESTMENT PROGRAM S COMPENSATION ELIGIBILITY AND ENTITLEMENTS FRAMEWORK 13. To reconcile the gaps between Afghan laws and regulations and ADB Safeguards, MPW has drafted a specific framework detailing the compensation eligibility and entitlements for the Investment Program. The key principles of the framework are detailed below: The negative impact on AP must be avoided or minimized as much as possible; Where negative impacts are unavoidable, the persons affected by the project and vulnerable groups will be identified and assisted in improving or regaining their standard of living. Information related to the preparation and implementation of resettlement plan will be disclosed to all stakeholders and people s participation will be ensured in planning and implementation. All RPs for the roads with resettlement impacts will be disclosed to the APs; Land acquisition for the project would be done as per the Land Acquisition Law of Afghanistan. The Act specifies payment of adequate compensation for the properties to be acquired. Additional support would be extended for meeting the replacement value of the property, that includes all transactions costs and without deduction for depreciation, and salvageable materials. APs who neither have titles nor recognized or recognizable claims to land will be compensated for their structures and for other improvements to the land. Widening and strengthening work will take place mostly on the existing alignment except at locations where the existing alignment may require shifting to accommodate bridges reconstructed in new locations adjacent to existing structures; Before taking possession of the acquired lands and properties, compensation and resettlement and rehabilitation (R&R) assistance will be paid in accordance with the provision described in this document; An entitlement matrix for different categories of people affected by the project has been prepared and provisions will be kept in the budget for those who were not present at the time of census survey. However, people moving in the project area after the cut off date will not be entitled to any assistance. In case of land acquisition the date of notification for acquisition will be treated as cut off date. For non titleholders such as squatters and encroachers the date of project census survey or a similar designated date declared by the executing agency will be considered as cut off date; Appropriate grievance redress mechanism will be established at the district level to ensure speedy resolution of disputes; All activities related to resettlement planning, implementation, and monitoring would ensure the involvement of women and other vulnerable groups; and Consultations with the APs will continue during the implementation of resettlement and rehabilitation works. Compensation and rehabilitation is to be provided before the land is acquired. A. Eligibility to Compensation and Rehabilitation 14. APs entitled to compensation or rehabilitation under the Investment Program are: (i) (ii) All APs with formal title, formal or customary deed, or traditional land right as vouched by the local Jirga, elders or Community Development Council.; Tenants and sharecroppers, whether registered or not; 130

131 Attachment 2 (iii) (iv) Owners of buildings, crops, plants, or other objects attached to the land (including those with no legal rights to the land); and APs losing business, income, and salaries (including those with no legal rights to the land). 15. Compensation eligibility will be limited by a cut-off date to be set on the completion day of the impacts assessment and AP census. All APs settling in affected areas after that date and who cannot prove that they are displaced users of affected plots will not be eligible for compensation. B. Compensation and Rehabilitation Entitlements 16. APs are entitled to various types of compensation and resettlement assistance as detailed below: Acquisition of land will be compensated at replacement cost either through replacement plots or in cash based on replacement cost to be approved by the council of ministers. MPW will shoulder all fees, taxes, and other charges, as applicable under relevant laws incurred in the acquisition and resource establishment. Houses, Structures and Buildings will be compensated in cash at replacement cost free of depreciation or transaction costs. Replacement costs are calculated in consultation with local governments, provincial MPW engineers and AP and will not include depreciation or salvaged materials which can be used for free by the AH. A lump sum relocation allowance of AF5,000 will be paid to each resettled AH in addition to building compensation. In case of partial impacts, cash compensation will be provided to restore the remaining structure. Moreover, buildings losing more than 25% of the floor area are considered as fully affected and are provided with cash compensation equal to the entire building. Loss of crop will be compensated at market rate along with additional assistance for purchase of seeds and restoration of future crop activities. APs will be given sufficient time to harvest their crops prior to the start of construction works to avoid impact on standing crops. Loss of trees: Fruit bearing trees will be compensated at the value of 1 harvest multiplied by the number of years needed to re-grow a tree at the same productive level of the tree lost. Non fruit bearing/timber trees will be valued based on the market value of their dry wood volume. The compensation for the tree will be free of deduction for the value of the wood left to the AH. Loss of business will be compensated based on tax receipts/other valid documents or, if these are not available, based on a fixed rate computed on the average net income of typical road businesses in project areas as determined by surveys conducted during LARP preparation. Compensation for permanent business losses will amount to six month of net income loss. Compensation for temporary business losses will cover income losses during the interruption period 35. Income losses for workers and employees Cash compensation for lost wages equivalent to their three months salary. 35 It is estimated that permanently affected road side business will be able to re-establish in another location within a period of 6 months, while those temporarily affected will be able to continue their operations within a period of 3 months. 131

132 Attachment 2 Sharecroppers and agricultural workers Sharecroppers will receive their share of harvest at market rates plus one additional crop compensation. Agricultural workers, with contracts to be interrupted, will get a cash compensation equivalent to their three months salary. Vulnerable Households Vulnerable people (APs below the poverty line, women household heads, mentally challenged headed households, etc.) will be provided an additional allowance equivalent to 3 months of average household income as determined during the LARP census as assistance and will be given priority in employment in project-related jobs. Severe agricultural land impacts When greater than 10% of an AP s agricultural land is affected, the AP will get an additional allowance for severe impacts equal to the market value of a year s net income crop yield of the land lost. Transitional livelihood allowance 36 AHs forced to relocate will receive a livelihood allowance of AF5,200 a month for 3 months. Community structures and public utilities Will be fully replaced or rehabilitated so as to satisfy their pre-project functions. Impacts on irrigation channels The project will ensure that irrigation channels are diverted and rehabilitated to previous standards. Temporary Impacts. In case of temporary land acquisition during construction, compensation shall be based on local land rental rates in the project area for the duration of use. The land shall be restored by the construction contractor(s) at the end of the rental period. 17. The above-described entitlements are summarized in the Entitlements Matrix provided in Table 2 below. Agricultural/ residential/ commercial land loss Table 2: Entitlements Matrix Item Application Eligibility Compensation Entitlements Land affected by right-of-way (ROW) Residential and commercial buildings loss Residential/ commercial structure affected AP with title, formal/customary deed, or traditional land right as vouched by local Jirga, elders or Community Development Council. Owners of structures (including informal settlers) Cash compensation at replacement cost either through replacement plots or in cash based on full replacement cost to be approved by the council of ministers. All fees, taxes, or other charges, as applicable under relevant laws are to be borne by the project - Cash compensation for affected structure and other fixed assets at replacement cost of the structure free of depreciation, taxes/fees and salvaged materials. - In case of partial impacts full cash assistance to restore remaining structure. If more than 25% of the building s floor area is affected, cash compensation will be computed for the entire building. - Right to salvage material from demolished structure 36 Transitional livelihood allowance is computed based on the prevailing wage rate of AF200 per day by 26 days or AF5,200 per month. This is also the basis for cash compensation on lost wages. This rate will be adjusted based on the current prevailing wage rate during LARP preparation. 132

133 Attachment 2 Item Application Eligibility Compensation Entitlements Crops losses Crops on affected land Owners of crops / sharecroppers - Cash compensation equal to replacement cost of crop lost plus cost of replacement seeds for Trees Losses Business losses by shop owners and employees Transitional Livelihood Allowance Relocation Allowance Assistance to vulnerable AH Severe agricultural land impact allowance Loss of Community, Cultural, Religious, or Government Sites Impact on irrigation channels Trees on affected land Permanent / temporary business losses along the ROW Residential/Co mmercial Structures affected Residential/Co mmercial Structures affected Affected by land acquisition, resettlement etc. Agricultural land Temporary or permanent loss due to the Project activities Temporary or permanent loss due to the Project activities Owner of trees (including informal settlers) Business / shop owners (including informal settlers), employees All Ahs All Ahs AH which are: female headed; poor (below poverty line) or headed by handicapped/disabled persons Agricultural land owners, leaseholders or sharecroppers losing >10% of their holdings Community/ Affected households Community/ affected households the next season. - Fruit bearing trees will be compensated at the value of 1 harvest multiplied by the number of years needed to re-grow a tree at the same productive level of the tree lost. - Non fruit bearing/timber trees will be valued based on the market value of their dry wood volume. - The compensation of the tree will be free of deduction for the value of the wood left to the AH. - Cash compensation for net income loss for the duration of business stoppage. In case of permanent loss, allowance for 6 months income. The compensation for business loss will be calculated based on tax receipts or when these are not available based on fixed rates Employees: indemnity for lost wages equivalent to three months income - Relocated owners/renters will receive a transitional allowance for livelihood losses at AF5,200 for 3 months - Relocated owners/renters (including informal settlers) will receive a relocation allowance of AF5,000 - Vulnerable households will be provided an additional three months of average household income allowance (AF28,500) as assistance. - Preferential employment in the project construction. - Allowance for severe land impacts equal to replacement cost of a year s net income from crop yield of land lost - Conservation, protection and cash compensation for replacement (Schools, communal centers, markets, health centers, shrines, other religious or worship sites, tombs,. Cash compensation for affected structures based on the above structures entitlements - Irrigation channels are diverted and rehabilitated to previous standards 37 This fixed rate is based on the average net income of road businesses in project areas as determined by the surveys conducted during LARP preparation. 133

134 Temporary loss of land Attachment 2 Item Application Eligibility Compensation Entitlements Temporary use - Cash compensation based on local land rental of land during rates for the duration of use and restoration at construction the end of the rental period. Unidentified Impacts AP with title, formal/customary deed, or traditional land right as vouched by local Jirga, elders or Community Development Council. AH or individuals - Unforeseen impacts compensated based on above entitlements during project implementation by the EA. ADB=Asian Development Bank; AF=Afghanistan currency; AH=affected household; AP=affected person; LAL=Land Acquisition Law; LARP=land acquisition and resettlement plan; no.=number; SPS=Safeguards Policy Statement. C. Land Valuation 18. In principle, land will be valued at replacement rates based on a survey of land sales in project areas. However, in rural Afghanistan there may be situations where land markets are insufficiently developed and land sales prices are not systematically recorded. In these cases land valuation will be based on local government revenue rates and will then be negotiated with the local communities. The land rates payable to the affected households will be determined based on extensive consultations with the local jirgas and the affected households. These negotiated rates will be adopted once endorsed by the Governor s Office. The LARPs will detail the consultation and negotiation activities that led to the definition of the final land rates so as to document the fairness and transparency of the land valuation process and the final agreement of the APs. VII. INSTITUTIONAL ARRANGEMENTS AND IMPLEMENTATION 19. The agency with responsibility for LAR planning, implementation and financing is MPW. Within MPW specific responsibility for day-to-day LAR action will rest on the Project Management Office (PMO) and, within it, on a Due Diligence Team (DDT). The PMO has overall responsibility of planning, implementation and monitoring of R&R activities in projects under the MFF. It is tasked to ensure availability of budget for R&R activities, select and appoint NGOs. Coordinate with line departments, implementing NGO and Construction Supervision Consultant (CSC), train resettlement teams and manage tasks involving local or central government or the affected communities shuras. The Construction Supervision Consultant (CSC) will assist in monitoring LARP implementation. An NGO will be engaged to help implement the LARP. 20. The staff of PMO has been trained on safeguards issues through an ADB Capacity Building TA. These engineers can be deputed by MPW as support staff to look after the resettlement activities at PMO for the smooth functioning of resettlement implementation. 1. Due Diligence Team (DDT) at the PMO 21. The DDT will work closely with other staff of the PMO and will specifically look at safeguards issues. The DDT will assist the PMO for getting all the necessary clearances and implementation of the resettlement activities prior to start of any civil work. The DDT will be supported by an International Resettlement Specialist (IRS) and one Domestic Resettlement Specialist (DRS). Similarly, there will be one International Environment Specialist (IES) who will 134

135 Attachment 2 be assisted by a Domestic Environmental Specialist (DES). Both the international and domestic resettlement specialists will work closely with the PMO. The DRS will work closely with the PMO engineers and implementing NGO at the project site level. The candidate to be selected as IRS is desired to have similar earlier experience in resettlement and social development planning and implementation. 2. Construction Supervision Consultant 22. LARP implementation will be monitored by the construction supervision consultants (CSC) who as the external monitoring agency (EMA) will also provide for the required compliance reports. The CSC will have local and, if needed, international staff to carry out LARrelated monitoring tasks. 3. Implementing NGO 23 MPW will engage a local NGO to assist in implementation of LARP. The NGO will play the role of a facilitator and will work as a link between the PMO and the APs. Further the NGO will educate the APs on the need to implement the Project, on aspects relating to land acquisition and R&R measures and ensure proper utilization of various compensations extended to the APs under the R&R entitlement package. The major LARP implementation responsibilities will be with NGOs. The NGO will be the link between the PMO and APs. Specific tasks of the NGO are as follows: Work under close coordination of the PMO, and DDT to implement the LARP. Involve the shura and local leaders, wherever necessary to implement the LARP to facilitate transparency in the process and public participation. Assist the PMO in dissemination of the LARP and other resettlement related information. Take lead in joint verification and identification of APs. Identify AHs whose lands which can be acquired through negotiated purchase or through expropriation Identify absent AHs Carry out a census of the APs and identify the vulnerable households (if required) Identify training needs of APs for income generation activities and ensure that they are adequately supported Counsel, generate awareness and resolve the grievances of the affected persons Put forth the unresolved grievances of the APs to the GRC Generate awareness about the livelihood restoration activities, and help the APs to make informed choices. Including assisting APs in participating in government development programs Prepare sub-project level plans for implementation of LARP and issue ID cards Assist APs in opening an account in the nearest local bank needed for transferring compensation payments Organize and assist displaced persons committees (DPCs) Participate in public meetings as and when required Submit periodic LARP implementation report to the PMO 24. Several other agencies and institutions will have a role in the preparation and implementation of the LARPs. These are: 135

136 Attachment 2 Community Shuras, Local Jirgas and Community Development Councils. These local entities will assist in various ways the communication between MPW and the affected communities. This includes facilitating public consultation, monitoring the management of complaints and grievances, vouching as needed for the land occupation status of the APs and assisting in the definition of land compensation rates where no clear land markets are established. Provincial Governments. This entity will ensure government functions at the provincial level, and following the land valuation survey or negotiation, will provide official endorsement of land compensation rates Ministry of Finance (MOF). The MOF will be responsible to coordinate the approval of the LARP by the Cabinet of Ministers and, once the LARP is approved, deploy the finances needed for LARP implementation. ADB. ADB will be responsible to provide approval of LARPs and of action related to the satisfactory implementation of this LARF. 25. The institutional arrangement for planning and implementing resettlement and rehabilitation activities will follow the general envisaged structure as depicted in Figure 1 below. The LARP will include a section on scheduling of LAR activities with clear indication of tasks, roles and responsibilities. 136

137 Figure 1: Land Acquisition and Resettlement Plan Institutional Arrangements Attachment 2 Government of Afghanistan MPW MOF Council of Ministers PMO DDT GRC Implementing NGO Local Government Supervision Consultants (EMA) Village Level MPW staff APs Village institutions (elders, Jirgas Community Development Councils) 137

138 Attachment The schedule for finalization and implementation of a resettlement plan will be scheduled as per the overall project implementation. The construction period for each project/subproject is tentatively scheduled for three years. All activities related to the land acquisition and resettlement must be planned to ensure that the compensation is paid prior to displacement and commencement of civil works. Public consultation, international monitoring and grievance redress will be undertaken intermittently throughout the project duration. However, the schedule is subject to modification depending on the progress of the project activities. As part of advance actions following loan negotiations the EA will establish the PMO, GRC, and appoint the NGO for resettlement implementation. The proposed LARP activities are divided in to three broad categories based on the stages of work and process of implementation. The details of activities involved in these phases are as follows: a) draft LARP finalization for PFR approval; b) finalization of implementation-ready LARP; c) LARP implementation; and d) start of physical civil works. Table 3 shows a tentative schedule for LARP activities in projects under the MFF including various sub tasks and tentative time line matching with civil work schedule. Table 3: Indicative LARP Preparation and Implementation Schedule No. Activity Responsibility Indicative Timeline A) Draft LARP Preparation for PRF Approval 1 Preparation of preliminary design USACE/Consultant 2 DMS/census/surveys/consultation Consultant 2-3 months 3 LARP drafting 4 ADB review and approval of draft LARP ADB 2 weeks 5 Government approval of draft LARP EA 1 week 6 Disclosure Consultant/ ESMU / PMO / ADB 7 Project appraisal ADB 1-2 months 8 PFR approval B) Review, Update and Finalisation of Implementation Ready LARP 1 Contract Awards signing ADB/PMO 2 Design implementation EA 3 Final definition of road alignment EA 4 Review surveys and valuation of data Consultant 3 4 months 5 Re-surveying to fill DMS data gaps Consultant 6 Updating resettlement leaflet and Consultant distribution to AHs 7 Proposal of rates to MoF PMO 8 LARP update and final valuation Consultant 9 ADB review and approval of LARP ADB 10 Government approval of LARP EA 2-3 weeks 11 Disclosure Consultant/ ESMU / PMO / ADB 12 Negotiations with APs to agree and sign off PMO/Consultant 1-2 months entitlement packages 13 Allocation of LAR funds EA 1-2 months 14 Staffing of PMO and DDT in place EA C) LARP Implementation 1 Contracting of Implementing NGO and Consultant / PMO June 13 consultants 2 Compensation delivery PMO, District Government 5-6 months 138

139 Attachment 2 No. Activity Responsibility Indicative Timeline 3 Internal monitoring CSC, PMO 4 Preparation of compliance report EMA 2-3 weeks 5 No-Objection from ADB to start civil works ADB 1 week D) Start of Civil Works 1 Start of civil works Construction Contractor after receipt of noobjection 2 Preparation of evaluation report EMA 1 year after completion of LARP implementation VIII. CONSULTATION AND INFORMATION DISCLOSURE 26. LARP preparation and implementation will be accompanied by an intensive public information and consultation program involving the APs, local institutions and village officials. The objective of these tasks will be to ensure that the APs can play a role in the definition of LAR compensation options and that their needs are reflected in the compensation program detailed in the LARPs. Information and consultation will be carried out through individual meetings, community meetings and through pamphlets and questionnaires. The date, location, number of participants and matter discussed will be documented in the LARPs. 27. As a condition to Investment Program appraisal, the LARF and Project 1 LARPs in Dari will be disclosed at the MPW-PMO office in Kabul and local MPW offices while the LARF and Project 1 LARPs will be posted on the ADB website. For the following tranches, the LARPs in Dari and English will be disclosed in the same locations as a condition to PFR approval. A LAR information leaflet with information including measurement of losses, detailed asset valuations, entitlements and special provisions, grievance procedures, timing of payments and displacement schedule will be made available in the local language (Dari) and distributed to all APs before the approval of the Investment Program and each subsequent tranches. Moreover, as required in the new ADB public communications policy, monitoring reports on the LARP implementation will be posted on the ADB website. IX. GRIEVANCE REDRESS MECHANISM 28. A grievance redress mechanism will be available to allow an AP appealing any disagreeable decision, practice, or activity arising from land or other assets compensation, while not preventing him or her to refer his complaint directly to the court. APs will be fully informed of their rights and of the procedures for addressing complaints during consultation, surveys, and time of compensation. The grievance redress mechanism entails four stages as follows: (i) (ii) Complaints are to be filed at the district governor offices. The district government with the help from Shura, NGO and PMOs resettlement team is obliged to reply and explain the decision within 30 days from the date the complaint was received. The Grievance Redress Committee (GRC) will assist the district governor offices in the mediation and resolution of conflict. If AP is unsatisfied or has no reply from the district governor office, grievances can then be lodged with the Province Governor offices. The Governor office will issue the final decision within 45 days. 139

140 Attachment 2 (iii) (iv) If AP is unsatisfied or has no reply from the province governor office, grievances can them be lodged with General Governor office in Kabul. The General Governor office will issue the final decision within 60 days. The AP always has final recourse through Afghanistan s legal channels and referred to the appropriate courts; however, every effort will be made to avoid this since the system is presently critically weak. Should the AP want to pursue legal recourse, however, MPW through its DDT and implementing NGO will ensure that support is given to the AP to prepare a case. 29. The PMO will design a pro-forma letter to be used for filing complaints. Literate local leaders and representatives of the APs will be identified for each project to form a Grievance Committee. The Grievance Committee will help the APs in filling the form and transmitting it to the appropriate authority and will assist them at every stage of the complaint process. 30. If grievances cannot be resolved at the local level, the MPW will hold the compensation amounts in escrow or trust account. Compensation will be paid in full upon final resolution of the case in the courts or other forum, in accordance with the entitlements of the AP. 31 A Grievance Redress Committee (GRC) will be established at the district level with the primary objective of providing a mechanism to mediate conflict and cut down on lengthy litigation process. It will also provide people, who might have objections or concerns about their assistance, a public forum to raise their objections and through conflict resolution, address these issues adequately. The GRCs will continue to function, for the benefit of the APs, during the entire life of each project under the MFF including the defects liability periods. The GRC will comprise of district government with representatives from MPW, PMO, APs and NGO etc. The specific functions of the GRC are as follow: Provide support for the APs on problems arising out of land/property acquisition like award of compensation and value of assets; Record the grievances of the APs, categorize and prioritize the grievances that needs to be resolved by the Committee and solve them within a month; Inform PMO of serious cases within an appropriate time frame; and Report to the aggrieved parties about the development regarding their grievance and decision of PMO. X. BUDGET AND FINANCING 32. Land acquisition funds for land affected by a subproject under the Investment Program will be financed by the government using counterpart funds. The budget for such activities will be allocated by MOF based on the costs assessment provided in the LARPs. MOF will authorize disbursement of these funds following the approval of the LARPs by the Council of Ministers. 33. Non-land compensation costs for assets affected by a subproject under the Investment Program or for livelihood assistance (cost of compensation of buildings, crops, trees, income losses and rehabilitation/location allowances) may be directly allocated from the grant or loan based on the costs assessment provided in the LARPs. MOF will authorize disbursement of these funds following the approval of the LARPs by the Cabinet of Ministers. 140

141 Attachment LARPs for subprojects under the Investment Program will provide detailed compensation and rehabilitation costs assessments and will clearly describe the methodology followed to identify the replacement rate for each affected asset. The LARP budgets will include LARP implementation costs including: administration charges, contingencies, and monitoring expenses. XI. MONITORING AND EVALUATION 35. LAR tasks under the Investment Program will be subjected to both internal and external monitoring. Internal monitoring will be conducted by the PMO. External monitoring will be assigned to an external monitoring and evaluation agency (EMA) hired by MPW and approved by ADB. A. Internal Monitoring 36. Internal monitoring will be carried out routinely by the PMO either directly or through the services of a consultant. The results will be communicated to ADB through the quarterly project implementation reports. Indicators for the internal monitoring will be those related to process and immediate outputs and results. This information will be collected directly from local MPW offices and reported monthly to the PMO to assess the progress and results of LARP implementation, and to adjust the work program, if necessary. The monthly reports will be quarterly consolidated in the standard supervision reports to ADB. Specific monitoring benchmarks will be: (i) (ii) (iii) (iv) (v) (vi) (vii) B. External Monitoring Information campaign and consultation with APs; Status of land acquisition and payments on land compensation; Compensation for affected structures and other assets; Relocation of APs; Payments for loss of income; Selection and distribution of replacement land areas (if any); and Income restoration activities 37. External monitoring will be carried out in parallel with the implementation of each LARP and at the end of LARP implementation will result in a final compliance report indicating whether the compensation program has been carried out based on the LARP provisions and ADB policy and with the APs satisfaction. The compliance report will be transmitted to the PMO and ADB. A satisfactory Compliance Report will be a condition to start civil works where LAR issues are present. In the case where the CSC is yet to be hired at the time of the implementation of the LARPs, external monitoring will be carried out by an EMA to be selected and hired from NGOs, academic institutions, or independent consultants. It is envisaged that for tranches after Project 1, the first external monitoring will be carried out by the CSC. External monitoring tasks will include: (i) (ii) (iii) (iv) Review and verify internal monitoring reports prepared by the PMO; Review of the socio-economic baseline census information of pre-displaced persons; Identification and selection of impact indicators; Impact assessment through formal and informal surveys with the affected persons; 141

142 Attachment 2 (v) Consultation with APs, officials, community leaders for preparing review report; and (vi) Assessment of the resettlement efficiency, effectiveness, impact and sustainability, drawing lessons for future resettlement policy formulation and planning. 38. As part of the final compliance report, the EMA will also assess the status of project affected vulnerable groups such as female-headed households, disabled/elderly and families below the poverty line. The following will be considered as the basis for indicators in monitoring and evaluation of the project: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) Socio-economic conditions of the APs in the post-resettlement period; Communications and reactions from APs on entitlements, compensation, options, alternative developments and relocation timetables etc.; Changes in housing and income levels; Rehabilitation of informal settlers; Valuation of property; Grievance procedures; Disbursement of compensation; and Level of satisfaction of APs in the post resettlement period. 39. The EMA will carry out a post-implementation evaluation of the LARP about a year after completion of its implementation. The compelling reason for this study is to ascertain if the objectives of the RP have been attained or not. The benchmark data of socioeconomic survey of severely affected APs conducted during the preparation of the LARP and Initial Poverty Social Assessment (IPSA) will be used to compare the pre- and post-project conditions. The EMA will recommend appropriate supplemental assistance for the APs should the outcome of the study show that the objectives of the LARP have not been attained. 142

143 Attachment 3 OUTLINE OF A LAND ACQUISITION AND RESETTLEMENT PLAN A LARP is required for all subprojects involving land acquisition and resettlement impacts. Its level of detail and comprehensiveness will be commensurate with the significance of potential resettlement impacts and risks. 1. Introduction: This chapter describes the scheme activities and items requiring LAR; alternative options, if any, considered to minimize land acquisition and its effects; and why remaining effects are unavoidable. 2. Scope of land acquisition and resettlement: This chapter describes the preparation of the impacts (who carried it out and when it was initiated) and provides a full assessment of each type of impact and a census and APs. The chapter also includes a description of the methodology followed to determine unit-compensation rates for each affected item and subsidy/allowance and will elaborate on the relocation strategy chosen. 3. Socio-Economic Survey. This chapter will provide a general assessment of the main socio-economic features of the affected population based on a 20% sample survey 4. Objectives, policy framework, and entitlements. Based on the LARF, this chapter outlines the eligibility and compensation framework for the scheme. 5. Consultation and grievance redress participation. This chapter summarizes procedures for redress of grievances by people affected described in LARF and describes the consultation/participation process and grievance redress that occurred in the subproject at hand. 6. Compensation, relocation, and income restoration. This chapter outlines the income restoration measures to be implemented. 7. Institutional framework. This chapter outlines the institutional arrangements for the scheme based on this LARF. It includes the following issues: responsibilities for main tasks and for planning, negotiating, consulting, approving, coordinating, implementing, financing, monitoring, and evaluating land acquisition and resettlement. 8. Resettlement budget and financing. This chapter provides the unit compensation rate for each affected item and assesses the LAR budget for the scheme. The LAR budget will include land acquisition and eventual land acquisition costs, amounts due for crop compensation and for the subsidies and allowances, monitoring and evaluation costs, and administrative costs and will be adjusted for inflation and applicable taxes. 9. Implementation schedule. This chapter provides a time schedule showing the LAR process and linking LAR tasks with civil works implementation. 10. Monitoring and evaluation. This chapter specifies arrangements for routine and independent monitoring and evaluation activities.

144 Attachment 4 ENVIRONMENTAL ASSESSMENT AND REVIEW FRAMEWORK ABBREVIATIONS ADB Asian Development Bank AITF Afghan Infrastructure Trust Fund AP affected person BMP Building Material Permits CEMP Contractor s Environmental Management Plan EA executing agency EARF environmental assessment and review framework EIA environmental impact assessment EIS environmental impact statement EMP environmental management plan EO Environment Officer GoA Government of Afghanistan GFP Grievance Focal Points IEE initial environmental examination LARP Land Acquisition and Resettlement Plan MFF multitranche financing facility MoH Ministry of Health MoM Ministry of Mines MPW Ministry of Public Works MOU memorandum of understanding NEPA National Environmental Protection Agency NTP National Transport Plan PMO program management office PER Public Environmental Report REA Rapid Environmental Assessment SDO Social Development Officer SPS Safeguards Policy Statement STD sexually transmitted disease UNEP United Nations Environment Programme

145 Attachment 4 CONTENTS Page I. INTRODUCTION 146 II. ASSESSMENT OF LEGAL FRAMEWORK AND INSTITUTIONAL CAPACITY 146 A. Afghanistan s National Environmental Policies 147 B. ADB Environmental Safeguard Requirements and Policies 149 III. ANTICIPATED ENVIRONMENTAL IMPACTS 150 A. Roads Design and Location Impacts Construction Impacts Operation Impacts 153 IV. ENVIRONMENTAL ASSESSMENT FOR PROJECTS AND/OR COMPONENTS 154 A. Environmental Screening and Classification Requirements 154 B. Environmental Assessment and Environmental Management Plan Requirements 155 V. CONSULTATION INFORMATION DISCLOSURE, AND GRIEVANCE REDRESS MECHANISM 156 A. Public Consultation 156 B. Information Disclosure 157 C. Grievance Redress Mechanism 157 D. Grievance Focal Points, Complaints Reporting, Recording and Monitoring 158 VI. INSTITUTIONAL ARRANGEMENTS AND RESPONSIBILITIES 158 A. MPW Responsibilities 158 B. ADB Responsibilities 155 VII. MONITORING AND REPORTING 159

146 Attachment 4 I. INTRODUCTION 1. This environmental assessment and review framework (EARF) has been developed to guide the Ministry of Public Works (MPW), Asian Development Bank (ADB) staff, transport infrastructure designers, supervision consultants, and construction contractors in carrying out the environmental assessment and relevant mitigation and monitoring activities required when designing and implementing projects to be financed under the multitranche financing facility (MFF). Thus, the purpose of the EARF is to provide a procedure for the environmental assessment of projects that will be identified during the course of the Transport Network Development Investment Program (the Program). 2. ADB together with other donors will arrange funding to the Government of Afghanistan (GoA) for the Program which will improve accessibility to socio-economic opportunities by improving land transport infrastructure. The Program will prepare an environment for a more comprehensive transport sector-based approach, 38 which will be based on long-term partnerships, sector coordination, and reliance on government systems to determine policies and priorities and implement transport sector projects which includes the rehabilitation and reconstruction of roads and potentially new rail links. 3. Transport infrastructure within Afghanistan has deteriorated due to poor maintenance, low government and contractor capacity for planning and implementation of projects, both resultant of the overall impact from 30 years of conflict. Economic growth can be promoted by improved transport infrastructure, which will improve accessibility to socio-economic opportunities, restore basic social services in rural areas, and generally support economic recovery through crossborder trade. The Program will support the updating and refinement of the Road Sector Master Plan into a more encompassing National Transport Plan (NTP) with a set of prioritized projects for implementation for funding under the Afghan Infrastructure Trust Fund (AITF). 4. The EARF is based on the existing regulatory and technical frameworks in Afghanistan for environmental management and ADB s Safeguards Policy Statement Consequently, within the context of the continuing efforts by Afghanistan to improve environmental protection in the country, the EARF will be periodically reviewed and revised, in consultation with ADB, on the basis of experience gained during implementation and changes, if any, in Afghanistan s or ADB s policies, regulations, and institutional arrangements. Revisions may also be introduced during the preparation of periodic financing requests for subsequent tranches. 5. This EARF will apply to all projects implemented by the Project in transport subsectors of: (i) roads and (ii) rail. The objective of the EARF is to ensure that the environmental impacts within these transport subsectors are appropriately addressed and mitigated to acceptable levels. II. ASSESSMENT OF LEGAL FRAMEWORK AND INSTITUTIONAL CAPACITY 6. Environmental assessment of future projects will be undertaken with regard to complying with ADB and GoA policies, legislation, and requirements. This also includes complying with international agreements. 38 The objective of the sector-based approach is to strengthen and build the government's capacity in implementing projects by expanding its capacity in design, implementation, management, and monitoring and evaluation. In the longer term, as capacity develops within the executing agency (EA) under the approach, the support of external experts will able to be reduced. 146

147 Attachment 4 A. Afghanistan s National Environmental Policies 7. The GoA approved and adopted the first-ever environmental framework law in 2005 (i.e., Environment Act, 2005) with an aim to include and address environmental issues in the process of development. Subsequently, the National Environmental Protection Agency (NEPA), an independent agency, was established in 2005 for environmental governance in the country. NEPA has overall responsibility to address policy and legal issues as well as environmental management in coordination with other related departments. NEPA reports directly to the Office of the President. 8. In coordination with other government offices and external agencies, NEPA is in the process of drafting and updating environmental regulations and guidelines for the country s environmental management. Presently, there exist the following environmental regulations, guidelines, and policies in Afghanistan: (i) Environmental Law, 2006, Islamic Republic of Afghanistan; (ii) Interim Environmental Impact Assessment Regulations, NEPA, Islamic Republic of Afghanistan; (iii) Administrative Guidelines for the Preparation of Environmental Impact Assessments, March 2007 (draft 2): NEPA, Islamic Republic of Afghanistan; and (iv) Environmental Impact Assessment Policy An Integrated Approach to Environmental Impact Assessment in Afghanistan, August 2006, NEPA, Islamic Republic of Afghanistan. 9. Environment Act, The Environment Act was approved by the Cabinet in December The Act contains a specifically designed legal framework needed to sustainably manage Afghanistan s natural resources and rehabilitate its damaged environment. The Act also clarifies institutional responsibilities and contains the compliance and enforcement provisions required to allow the Government to enforce the legislation. The law is a fundamental prerequisite to enable NEPA to fulfil its mandate. The primary objectives of the Act are to: (i) (ii) (iii) (iv) (v) improve living conditions and protect the health of humans, fauna, and flora; maintain ecological functions and evolutionary processes; secure the needs and interests of present and future generations; conserve natural and cultural heritages; and facilitate the reconstruction and sustainable development of the national economy. 10. The Environment Act was developed by NEPA over a period of two years with the support and technical advice of the United Nations Environment Programme (UNEP) and the International Union for Conservation of Nature and international experts. UNEP also facilitated an extensive national consultation process on the draft act with all national stakeholders (ministries, quasigovernment agencies, and civic society) and other interested parties (United Nations agencies, ADB, World Bank, International Union for Conservation of Nature, United States Agency for International Development). UNEP is supporting NEPA in developing regulations subsequent to the Environment Act, particularly in the fields of environmental impact assessment, integrated pollution control, and compliance and enforcement, and the institutional processes and systems required to adequately and effectively implement the Environment Act. 147

148 Attachment Administrative Guidelines for Preparation of Environmental Impact Assessments, March 2007 (Draft 2). The guidelines are in a draft form prepared by NEPA in coordination with UNEP. The purpose of the guidelines is to provide guidance to project proponents while undertaking development projects that may have potential impacts on the environment. They also provide guidance on how the public should be consulted and define the roles and responsibilities of various stakeholders in that process. 12. Environmental Impact Assessment Policy An Integrated Approach to Environmental Impact Assessment in Afghanistan, August NEPA, with assistance from UNEP, has developed the environmental impact assessment (EIA) policy. The policy stipulates broad guidelines for project proponents on integrating EIA into the process of development, and procedures to address environmental consequences and involve necessary institutions in the process of project implementation. The policy has yet to be approved by the Cabinet (Ministry of Justice), which is necessary for it to obtain statutory status with regard to project proponents. 13. Interim Environmental Impact Assessment Regulations, NEPA (Draft 2.3). These regulations govern the process of environmental impact assessment in Afghanistan on an interim basis pending establishment of the EIA board of experts under Article 20 of the Environment Law and issuing of final regulations. These regulations provide the detailed process of EIA and divide the projects into categories A and B based on potential impacts. In accordance with Article 13(1) of the Environment Law, these regulations apply to the following prohibited activities: (i) (ii) (iii) (iv) Category A activities, set out in Schedule I of the Regulations, are those activities likely to have significant adverse environmental impacts that are sensitive, diverse, or unprecedented, and that will impact a broader area than the sites or facilities subject to the physical works of the activity. Category B activities, set out in Schedule I of the Regulations, are those activities likely to have significant adverse impacts on human environments or environmentally sensitive areas that are less adverse than those of Category A activities, are site-specific, and in most instances are not irreversible. Any activity that is likely to have significant adverse impact on the environment of an area that has been determined by NEPA to be an environmentally sensitive area. Any other activity that is likely to have a significant adverse impact on the environment and is determined by NEPA to be a prohibited activity. 148

149 Attachment 4 B. ADB Environmental Safeguard Requirements and Policies 14. Environmental assessment will be carried out to ensure that potential adverse environmental impacts are addressed according to the ADB Safeguard Policy Statement, June 2009 (the Safeguard Policy Statement ). 15. The Safeguard Policy Statement (SPS) consists of three policy components: (i) Environment Safeguards, (ii) Involuntary Resettlement Safeguards, and (iii) Indigenous People Safeguards. The objectives of Environment Safeguards are to ensure the environment soundness and sustainability of projects and to support the integration of environmental considerations into the project decision-making process. To help achieve the desired outcomes, ADB adopts a set of specific safeguard requirements that need to be achieved during the processing and implementation of projects financed by ADB. The environmental safeguard principles are stated in the Safeguard Policy Statement, which will guide environmental assessment process of projects. 16. The SPS establishes the format for the presentation of the environmental assessment. 17. ADB categorizes projects into categories A, B, C, and FI according to the significance of likely impacts. The categorization criteria are as follow: (i) (ii) (iii) (iv) Category A. Projects with potential for significant adverse environmental impacts: An EIA is required to address significant impacts. Category B. Project judged to have some adverse impacts, but of lesser degree and/or significance than category A. An initial environmental examination (IEE) is required to determine whether or not significant environmental impacts warranting an EIA are likely. If an EIA is not needed, the IEE is regarded as the final environmental assessment report. Category C. Projects unlikely to have adverse impacts. No EIA or IEE required, although environmental implications are still reviewed. Category FI. Projects are classified as category FI if they involve a credit line through a financial intermediary or an equity investment in a financial intermediary. The financial intermediary must apply an environmental management system, unless all subprojects will result in insignificant impacts. 18. Based on the Government s and ADB s environmental policies, the projects to be financed under the MFF will be subject to the following requirements: (i) (ii) (iii) A requirement for environmental assessment of each project depends on its potential impacts. Based on these potential impacts, and using ADB s Rapid Environmental Assessment (REA), a project will be classified in accordance with the Government s and ADB s environmental assessment guidelines. For each Category A project, an EIA including an environmental management plan (EMP) is required. For each Category B project, an IEE including EMP is required. A project will be categorized as Category A if the project: 149

150 Attachment 4 (a) (b) (c) requires complex mitigation measures needing to be prepared through an in-depth assessment of the impacts and detailed study for preparing mitigation measures; will generate impacts on an ecologically sensitive area, particularly if the project: (1) passes through or is located less than 100 meters from any designated wildlife sanctuary, national park, other sanctuary, botanical garden, or area of international significance (e.g., a protected wetland designated by the Ramsar Convention); (2) is located within 300 meters of a coastline; or (3) passes through any cultural heritage designated by UNESCO; or involves establishment of a bypass or new alignment passing through any ecologically sensitive areas (hilly or mountainous, forested, wetlands, nearby estuarine, or other area with important ecological function). (iv) Road and railways upgradation, rehabilitation and maintenance projects that do not fall into the above classification are classified as Category B or Category C if only minor maintenance works are envisaged. III. ANTICIPATED ENVIRONMENTAL IMPACTS 19. The investment program outputs will be: (i) reconstructed, rehabilitated, and systematically maintained priority transport infrastructure; and (ii) strengthened technical and managerial capacity of MPW and relevant agencies staff. These outputs will be achieved through two components: transport infrastructure development and transport network management capacity development. 20. During preparation of the Program, three IEEs were prepared, one for each of the following proposed road projects included in tranche 1: (i) Faizabad Eshkashem, (ii) Kabul Jalalabad/Bagramy Surkhrod, and (iii) Jabul Saraj Nijrab. The results of these studies were used to develop the EARF for the Program. A. Roads and Railway 21. Overall, most of the impacts are not particularly significant as roads that will be rehabilitated will be reconstructed within their existing location, i.e., within already existing road easements, while for railways only maintenance activities will be required. Thus, land acquisition and associated issues with regard to disturbance of cultural sites, destruction of significant vegetation and significant habitats is unlikely to appear as an issue in the majority of these projects. 1. Design and Location Impacts 22. Runoff Management Design: Roadside stormwater drainage will include the following recommendations: Cross drainage using culverts will be carefully evaluated to ensure that systems do not fail either from excessive discharge. The technical design recommends that a Q 10 year discharge be used based on existing runoff design methods. Where the road traverses ridges, side drains (off-takes) are required to direct storm water flows away from the road. These are to be established at 2 m vertical intervals (VI) where 150

151 Attachment 4 bare earth channels will be maintained. If a 2m VI cannot be achieved then consideration will need to be given to vegetated channels with a VI of 4m or otherwise armored with concrete or half round steel pipes. Where cross drains are required stable outlets will provided that can carry the runoff safely to the disposal area. Culverts and drains must not be allowed to terminate above a disposal area without considering the possible effects on the stability of the discharge area. All pipe and box culverts must have flared level outlets and be provided with a vertical cutoff wall at the end of the apron that extends at least 0.35m below the apron to avoid the apron being undercut. All culverts are to discharge to safe (non-eroding) areas. Regular maintenance of roadside drainage systems is required. 23. The road design will recognize the above recommendations and make allowance to cope with runoff management requirements via increased costs. 24. Flora and Fauna and Protected Areas: Should any roads need to be reconstructed through sites that contain significant areas of primary vegetation and undisturbed habitats or traverse a protected area then a rigorous environmental categorization will be undertaken to ensure proper environmental classification and the level of environmental assessment needed according to ADB Environmental Guidelines. 25. Land Acquisition: MPW will follow an approach of having all relevant landowners sign MOUs regarding unimpeded access to the use of infrastructure in question during and after construction. The Government, the original landowner, and the local community will need to sign the MOU. Should land acquisition and compensation need to be paid for lost assets a Land Acquisition and Resettlement Plan (LARP) to meet ADB standards will be prepared. For the three projects proposed in tranche 1, LARPs have been prepared. 2. Construction Impacts 26. Air Quality: During the construction phase the activities that could produce impacts on air quality are smoke emissions from vehicles or machines and dust raised from the construction activities. Since the impact on air quality is judged to be minimal no rigorous air quality monitoring is expected to be required. 27. Dust may become a nuisance to surrounding communities from construction activities. Where dust will be an issue, the contractor will limit the area opened and reduce vehicle movements. Water will be sprayed on affected areas as required to keep dust down both at the worksite and on haul routes that pass through residential areas. Stockpiles may also release dust into the surrounding area. 28. Sources of Aggregates: Should a contractor elect to source aggregates locally, the contractor will be required to ensure that aggregate is sourced from sites that have a Building Material Permits (BMP) issued by the Ministry of Mines (MoM) either to the owner of the quarry or directly to the contractor for the extraction of materials. Any site that is opened by the contractor will be properly closed at the completion of work. 29. Soils and Erosion: During construction excavated areas will need to be reviewed for potential soil erosion damage and protection arranged as necessary to avoid the movement of eroded soil from the site into watercourses and onto adjoining areas including the worksite. Arrange to limit the area that is being excavated and use soil conservation technology such as silt 151

152 Attachment 4 fences to reduce and control erosion from these areas. At the completion of work all disturbed areas will be stabilized by re-vegetation techniques. 30. Water Quality: Water quality can be affected during construction activities when soils, waste water, oils and lubricants, sewage and other materials are allowed to move into the environment. Construction activities that may exacerbate the movement of these materials into the fresh or marine water environments will be examined and mitigation measures developed. 31. Flora and Fauna: During the construction phase flora and fauna can be affected but any potential impacts are considered to be minimal as the construction work will be performed at previously developed sites and the previous operation of the road will have already disturbed fauna in these areas. 32. Protected Areas and Sensitive Ecosystems: The majority of work will be rehabilitation of existing roads. Should new roads be required and are located within protected areas or sensitive ecosystems, a rigorous environmental categorization will be undertaken to ensure proper environmental classification and the level of environmental assessment needed according to ADB Environmental Guidelines. 33. Historical and Cultural Resources: Roads are unlikely to be located in areas where there are any known significant cultural resources or property that could be subjected to excavation and removal. Quarry sites where materials will be sourced are anticipated to be existing sites and do not have cultural properties of any significance. Quarries will also be subject to a BMP. The contractor will consult with local leaders and authorities if new sites for sourcing materials are identified to allow for areas of cultural importance to be avoided. 34. Community - Worker Interactions: Road construction and maintenance is intended to be labor based as much as possible with the local communities being recruited to undertake piece work along the road as required. This will avoid possible conflicts between outside labor and local communities who may consider that they have been overlooked and become resentful of the outside labor. 35. The location of the site and any campsite with regard to local communities will need to be carefully appraised by the contractor, the developer and local community leaders to avoid the development of possible conflict situations. 36. The contractor will arrange with the Ministry of Health (MoH) to provide STDs and HIV/AIDS awareness meetings with the local communities. 37. Occupational Health and Safety: A number of activities and products can give rise to health and safety impacts during the construction phase. Most of these impacts are however considered minimal. The potential impacts are (i) contamination of local water supplies by potential contaminants such as sediments, fuel products and lubricants, and sewage giving rise to gastro-intestinal problems (ii) air pollution from exhaust fumes and dust giving rise to respiratory conditions; (iii) risk of accidents at work sites, and (iv) spread of communicable diseases. The contractor will minimize risks of accidents, injuries, and diseases by identifying occupational risks, providing preventive and protective measures, providing appropriate equipment, conducting occupational appropriate trainings, having in place an emergency response system including reporting and documentation arrangements. 152

153 Attachment Noise: There are likely to be numerous houses located alongside the roadway and excessive noise should be curtailed. Should excessive noise become an issue construction should be curtailed from 1900h to 0700h. Ideally noise should not exceed 45 dba measured at the outside of any residence. EMPs should include a provision that baseline and routine noise monitoring should be conducted at the location of sensitive receptors. Monitoring locations should be confirmed by the time of project inception, and should be reviewed periodically to reflect project implementation changes and analysis of monitoring data. 39. Vibration: Where compaction of the road base and aggregate will require a vibrating roller compactor, the contractor will establish the following: Type and size of impact of vibration machinery Zone of influence for the vibration machine The contractor will be the responsible for assessing the condition of buildings that may be susceptible to vibration within the zone of influence before commencing any work. The contractor will be responsible for any damage caused as a result of operating this equipment. Prior to commencing work with any vibrating machine the contractor will arrange to advise people in nearby houses that this work is due to commence. EMPs should include a provision that baseline and routine vibration monitoring should be conducted at the location of sensitive receptors. Monitoring locations should be confirmed by the time of project inception, and should be reviewed periodically to reflect project implementation changes and analysis of monitoring data. 3. Operation and Maintenance Impacts 40. Soils and Erosion: The road excavation sites will be stabilized during construction and soil erosion from the road itself is not expected. However, the roadside drainage systems will require to be maintained and this will require the removal of accumulated sediments or vegetation where this is reducing cross section area within the drainage systems. If vegetation control is required in drains this should be removed by slashing rather than excavated which will leave behind an erodible surface. 41. Flora and Fauna: Impacts on flora and fauna are generally expected to be low as the road and rail have already provided the initial access to these areas. However, operational impacts will need to be re-assessed with regard to possible adverse impacts that may arise from increased access in particular to forest resources and wildlife. 42. Health and Safety: While there is not expected to be any significant changes in road locations the improved surface will increase traffic speed and coupled with greater traffic volumes it is likely that there will be a small increase in accidents. Should safety issues be determined arrange the installation of traffic calming devices on the road, install signage and increase community awareness of traffic hazards. 43. Risk of Spread of Communicable Diseases: During the operational phase of the subprojects there is an increased potential risk of spreading communicable diseases resulting from greater mobility of people. The overall risk is considered to be slight and will be mitigated by the implementation of a STIs/HIV/AIDS awareness and prevention campaign that will be conducted during the construction phase by MoH for both workers and the community. 153

154 Attachment 4 IV. ENVIRONMENTAL ASSESSMENT FOR PROJECTS AND/OR COMPONENTS 44. The following general criteria will be adopted for selection of the projects included in the MFF: (i) (ii) (iii) (iv) Projects shall only be selected from the Government s list of priority transport infrastructure projects; The projects shall only involve activities that follow all the government regulations; Types of projects listed in ADB SPS s Appendix 5 (ADB Prohibited Investment Activities List do not qualify for ADB financing; and Projects deemed to have considerable adverse impacts to the environment or located in environmentally sensitive areas are subject to mandatory environmental assessment as detailed below. 45. All projects will be subject to environmental assessment process (Initial Environmental Examination (IEE) or Environmental Impact Assessment (EIA)). Environmental assessment is a generic terms used to describe a process of environmental analysis and planning to address the environmental impacts and risks associated with a project. Depending on the significance of project impacts and risks, the assessment may comprise a full scale EIA for Category A projects, an IEE or equivalent process for Category B projects, or a desk review for Category C projects. IEEs for 3 sub-projects under Project, which can be used as models for future tranches, have been prepared. The Project will require no further detailed assessment unless there are changes during detail design. A. Environmental Screening and Classification Requirements 46. The Safeguard Policy Statement establishes screening and categorisation of projects and determines the level of study required. The significance of project's environmental impacts and risks determines the environmental categorization of the project. 47. During the selection of subprojects, Policy Principle 8 (Environment) as specified in the Safeguard Policy Statement will be used for the first level of screening. Policy Principle 8 specifies: Do not implement project activities in areas of critical habitats, unless (i) there are no measurable adverse impacts on the critical habitat that could impair its ability to function, (ii) there is no reduction in the population of any recognized endangered or critically endangered species, and (iii) any lesser impacts are mitigated. If a project is located within a legally protected area, implement additional programs to promote and enhance the conservation aims of the protected area. In an area of natural habitats, there must be no significant conversion or degradation, unless (i) alternatives are not available, (ii) the overall benefits from the project substantially outweigh the environmental costs, and (iii) any conversion or degradation is appropriately mitigated. Use a precautionary approach to the use, development, and management of renewable natural resources. 48. Projects which trigger any of the above conditions in Policy Principle 8 will require approval from ADB who will advise whether the project may proceed. If it will proceed it will undertake a rigorous environmental categorization to ensure proper environmental classification and the level of environmental assessment needed according to ADB Environmental Guidelines. 154

155 Attachment All subprojects to be included in MFF will be screened to determine its environmental category based on the ADB s REA Checklist. 39 Categorization is to be based on the most environmental sensitive component, which means that if one part of the project is with potential for significant adverse environmental impacts, then the project is to be classified as Category A regardless of potential environmental impacts of other aspects of the project. In general, a project will be classified as Category A if the project: (i) (ii) (iii) is a new road or rail alignment; requires a complex mitigation measure needing to be prepared through an in depth assessment of the impacts and detailed study for preparing mitigation measures; will generate impact on an ecologically sensitive area, particularly if the project is located in buffer or core zone of any designated specially protected areas, or area of international significance or cultural heritage and archaeological sites designated by UNESCO. 50. Road upgrading and rehabilitation projects that do not fall into the above category as classified as B. 51. Railway maintenance projects that require minor, very localized construction works will be categorized as Environment Category C. B. Environmental Assessment and Environmental Management Plan Requirements 52. At an early stage for preparation of each project, MPW will identify potential direct, indirect, cumulative and induced environmental impacts on and risks to physical, biological, socioeconomic, and physical cultural resources and determine their significance and scope, in consultation with stakeholders, including affected people and concerned NGOs. If potentially adverse environmental impacts and risks are identified, MPW will undertake an environmental assessment as early as possible in the project cycle. For projects with potentially significant adverse impacts that are diverse, irreversible, or unprecedented, MPW will examine alternatives to the project s location, design, technology, and components that would avoid, and, if avoidance is not possible, minimize adverse environmental impacts and risks. The rationale for selecting the particular project location, design, technology, and components will be properly documented, including, cost-benefit analysis, taking environmental costs and benefits of the various alternatives considered into account. The "no action" alternative will be also considered. 53. Impacts and risks will be analyzed in the context of the each project area that encompasses: (i) (ii) (iii) (iv) the primary project site(s) and related facilities; associated facilities that are not funded as part of the Program, and whose viability and existence depend exclusively on the project and whose goods or services are essential for successful operation of the project; areas and communities potentially affected by cumulative impacts of the Program, and other sources of similar impacts in the geographical area; and areas and communities potentially affected by impacts from unplanned but predictable developments caused by the project that may occur later or at a different location. 39 ADB s Rapid Environmental Assessment for the Transport Network Development Investment Program is provided in Annex

156 Attachment Environmental impacts and risks will also be analyzed for all relevant stages of the project cycle, including preconstruction, construction, operations, decommissioning, and post-closure activities such as rehabilitation or restoration. 55. MPW will prepare an EMP that addresses the potential impacts and risks identified by the environmental assessment. The EMP will include the proposed mitigation measures, environmental monitoring and reporting requirements, emergency response procedures, related institutional or organizational arrangements, capacity development and training measures, implementation schedule, cost estimates, and performance indicators. 56. ADB requires that the environmental assessment and presentation of the EMP is to follow the report structure outlined in Appendix 1 of the Safeguard Policy Statement. For both Category A and Category B subproject the IEE or EIA consists of 11 sections: A B C D E F G H I J Executive Summary Policy, Legal and Administrative Framework Description of the sub-project Description of the Environment Anticipated Environmental Impacts and Mitigation Measures Analysis of Alternatives Information Disclosure, Consultation, and Participation Grievance Redress Mechanism Environmental Management Plan Conclusions and Recommendations 57. MPW should ensure that ADB be given access to undertake environmental due diligence for all projects under the MFF. However, MPW has the main responsibility for undertaking environmental due diligence and monitoring the implementation of environmental mitigation measures for all projects. The due diligence report as well as monitoring reports on implementation of the EMP needs to be documented systematically V. CONSULTATION INFORMATION DISCLOSURE, AND GRIEVANCE REDRESS MECHANISM A. Public Consultation 58. For any subproject subject to the EARF and where an IEE is required, formal and documented public consultation and information disclosure will be required in accordance with the ADB and government s consultation and information disclosure requirements. This will be done at an early stage during IEE preparation and is to inform stakeholders of the project components and to encourage input to identify possibly overlooked environmental issues. The information disclosed and feedback provided at the consultation sessions will be summarized, attendance recorded, and the document attached as an annex to the IEE. 59. For each of the subprojects the MPW will organize consultations with project affected people and other stakeholders. Consultation will be based on the following principles: i. Early start in the project preparation stage and continuation throughout the project cycle; ii. Timely disclosure of relevant information in a comprehensible and readily accessible to affected people format; iii. Ensuring the absence of intimidation or coercion during public consultation; 156

157 Attachment 4 iv. Gender inclusive and responsive with focus on disadvantaged and vulnerable groups, and v. Enabling the integration of all relevant views of affected people and stakeholders into decision-making. 60. Invited attendees at IEE consultations will include government agencies and district authorities, community representatives, as well as NGOs. At least 2 weeks notice of consultation meetings will be given MPW organized public consultations for Tranche 1 projects. The materials of the consultations have been documented and included in the IEE reports of tranche 1. B. Information Disclosure 62. MPW and ADB agree that in disclosing environmental information for each of the projects to the public that: i. MPW is responsible for ensuring that all environmental assessment documentation, including the environmental due diligence and monitoring reports, are properly and systematically kept as part of a MPW project specific record; ii. all environmental documents are subject to public disclosure, and therefore be made available to public; iii. for ADB s Category A projects, the draft EIAs will be disclosed to the public through ADB s website 120 days prior to ADB Board consideration, or approval of the PFR for subsequent tranches. The EIA/IEE has to be reviewed by ADB before it is disclosed to the public; and iv. MPW will ensure that meaningful public consultations, particularly with project affected persons, are undertaken during the IEE/EIA preparation process for the future projects. C. Grievance Redress Mechanism 63. In order to receive and facilitate the resolution of affected peoples concerns, complaints, and grievances about the project s environmental performance an Environmental Grievance Redress Mechanism will be established for each of the projects. When and where the need arises, the mechanism will be used for addressing any complaints that arise during the implementation of projects. The grievance mechanism should be scaled to the risks and adverse impacts of the project. It should address affected people's concerns and complaints promptly, using an understandable and transparent process that is gender responsive, culturally appropriate, and readily accessible to all segments of the affected people at no costs and without retribution. The mechanism should not impede access to the Afghanistan s judicial or administrative remedies. MPW will appropriately inform the affected people about the mechanism. 40 Contingent on the security situation which may preclude foreigners or even non-local people from travelling to and conducting consultation in most areas, the consultation requirement may be waived for the initial environmental examination preparation. However, public consultation it is required to be undertaken by the contractor before works start. 157

158 Attachment 4 D. Grievance Focal Points, Complaints Reporting, Recording and Monitoring 64. Environment complaints can be received through Grievance Focal Points (GFPs), these will be designated personnel at various levels who would be responsible for receiving the Environmental complaint, resolving it or ensuring that it reaches the right quarters where it may be resolved. These designated GFPs may be village level local leaders, or village elders. Affected people may lodge their complaint for registration through a personal visit, call or letter to any of the GFPs. 65. Each GFP will maintain a record of the complaints received and will follow up on their rapid resolution. MPW will enter and maintain a complete record of all environmental complaints received alongside the record-book that serves as the social complaints register. MPW will also keep track of their status and will ensure that they are resolved. VI. INSTITUTIONAL ARRANGEMENTS AND RESPONSIBILITIES A. MPW Responsibilities 66. MPW will appoint or engage one or more environmental specialists as an Environmental Officer (EO) to support the program management office (PMO), funded under the MFF. These specialists will provide input and guidance on environmental management and safeguards to the contractors, and will help build environmental management capacity at the regional offices of MPW (ToR is attached as Annex 2). Adequate funding resources will be provided under each project for restoring the environment to at least its preconstruction condition. That will include, but not be limited to, landscaping and revegetation of affected surfaces. 67. MPW will be responsible for the following: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) Prepare ADB s REA Checklists and classify projects in consultation with NEPA and other departments. Based on the environmental classification of projects, prepare terms of reference to conduct IEE or EIA studies. Hire an environmental consultant to prepare IEE or EIA reports including EMP for public disclosure. Ensure that an IEE or EIA are prepared in compliance with the requirements of the Government and ADB, and that adequate consultation with affected people is undertaken in accordance with ADB requirements. Undertake review of the IEE or EIA, and EMP reports to ensure their compliance with the requirements of the Government and ADB. Obtain necessary permits and/or clearance, as required, from NEPA and other relevant government agencies, ensuring that all necessary regulatory clearances are obtained before commencing any civil work on the relevant sections. Submit to ADB the IEE or EIA, and EMP reports and other documents, as necessary. Ensure that any EMP including relevant mitigation measures needing to be incorporated during the construction stage by the contractor are included in the bidding documents. Ensure that contractors have access to the EIA or IEE and EMP reports of the projects. 158

159 Attachment 4 (x) (xi) (xii) (xiii) (xiv) Ensure that contractors understand their responsibilities to mitigate environmental problems associated with their construction activities. Ensure and monitor that an EMP including an environmental monitoring plan will be properly implemented. In case unpredicted environmental impacts occur during the project implementation stage, prepare and implement as necessary an environmental emergency program in consultation with NEPA, any other relevant government agencies, and ADB. In case a project needs to be realigned during implementation, review the environmental classification, revise it accordingly, and identify whether a supplementary IEE or EIA study is required. If yes, prepare the terms of reference for undertaking a supplementary IEE or EIA and hire an environmental consultant to carry out the study. Submit annual reports on implementing EMPs, including implementation of an environmental emergency program, if any, to NEPA and ADB. B. ADB Responsibilities 68. ADB will be responsible for the following: (i) (ii) (iii) Review IEE and/or EIA reports and the rapid environmental assessment checklist as a basis to issue approval for the project. Undertake periodic monitoring of the EMP implementation and due diligence as part of an overall project review mission. If required, provide advice to MPW in carrying out its responsibilities to implement the EMP for the project. VII. MONITORING AND REPORTING 69. Throughout implementation of the MFF, the Government and ADB will monitor the implementation progress and impact of projects. Overall, the EMP for each project will be implemented by the PMO within MPW. In consultation with MPW and ADB, the PMO will establish a system for preparing quarterly reports on environmental performance monitoring, issues resolution, and corrective action plans. 70. An EMP will be part of the overall project monitoring and supervision, and will be implemented by the supervision consultants with oversight from the PMO. Progress on the preparation and implementation of an EMP will be included in the periodic project progress reports. Specific monitoring activities defined in the IEEs or EIAs and EMPs will be carried out by the contractors and monitored by the PMO. MPW will submit semi-annual reports on EMPs implementation for ADB s review. 71. In general, the overall extent of monitoring activities, including their scope and periodicity, should be commensurate with the project s risks and impacts. MPW is required to implement safeguard measures and relevant safeguard plans, as provided in the legal agreements, and to submit periodic monitoring reports on their implementation performance. At a minimum, ADB will require MPW to: (i) (ii) establish and maintain procedures to monitor the progress of implementation of EMPs; verify the compliance with environmental measures and their progress toward intended outcomes; 159

160 Attachment 4 (iii) (iv) (v) (vi) (vii) document and disclose monitoring results and identify necessary corrective and preventive actions in the periodic monitoring reports; follow up on these actions to ensure progress toward the desired outcomes; retain qualified and experienced external experts or qualified NGOs to verify monitoring information for projects with significant impacts and risks; use independent advisory panels to monitor project implementation for highly complex and sensitive projects; and submit periodic monitoring reports on safeguard measures as agreed with ADB. 72. ADB will carry out the following monitoring actions to supervise project implementation: (i) conduct periodic site visits for projects with adverse environmental or social impacts; (ii) conduct supervision missions with detailed review by ADB s safeguard specialists/officers or consultants for projects with significant adverse social or environmental impacts; (iii) review the periodic monitoring reports submitted by MPW to ensure that adverse impacts and risks are mitigated as planned and as agreed with ADB; (iv) work with MPW to rectify to the extent possible any failures to comply with their safeguard commitments, as covenanted in the legal agreements, and exercise remedies to re-establish compliance as appropriate; and (v) prepare project completion reports that assesses whether the objective and desired outcomes of the EMPs have been achieved, taking into account the baseline conditions and the results of monitoring. 73. The PMO, with assistance of the international or national environmental consultants, will review the IEE or EIA and corresponding EMP for each project to ensure that mitigation measures and monitoring plans proposed in that document are in compliance with ADB s and national requirements. According to the reports and reviews during its missions, ADB, in consultation with the Government, will confirm compliance. For this purpose, the PMO will provide ADB with access to information on any projects. The information on implementation of an EMP, as well as that on environmental and social safeguard compliance, will be systematically documented and reported to ADB as part of the regular progress reports. 74. Monitoring plans have been prepared and are attached to each IEE for the tranche 1 projects. (i) (ii) (iii) An EO in MPW-PMO will be responsible for reviewing and updating the monitoring program to ensure that it meets the intention of the EMP and for carrying it out. The EO will prepare a quarterly report to be attached to the subproject periodical report to the ADB. The report will outline where work has not complied with the EMP and what steps have been taken to rectify it After 1 year the EO will arrange to review the monitoring program and make any adjustments to it as required. The EO will inform the ADB and MPW of any changes that are recommended to be made prior to implementing the changes. 160

161 Attachment 4 Rapid Environmental Assessment (REA) Checklist Annex 1 Instructions: (i) The project team completes this checklist to support the environmental classification of a project. It is to be attached to the environmental categorization form and submitted to the Environment and Safeguards Division (RSES), for endorsement by Director, RSES and for approval by the Chief Compliance Officer. (ii) This checklist focuses on environmental issues and concerns. To ensure that social dimensions are adequately considered, refer also to ADB's (a) checklists on involuntary resettlement and Indigenous Peoples; (b) poverty reduction handbook; (c) staff guide to consultation and participation; and (d) gender checklists. (iii) Answer the questions assuming the without mitigation case. The purpose is to identify potential impacts. Use the remarks section to discuss any anticipated mitigation measures. Country/Project Title: Sector Division: AFG / Transport Network Development Investment Program CWTC Screening Questions Yes No Remarks A. PROJECT SITING IS THE PROJECT AREA ADJACENT TO OR WITHIN ANY OF THE FOLLOWING ENVIRONMENTALLY SENSITIVE AREAS? CULTURAL HERITAGE SITE X PROTECTED AREA WETLAND MANGROVE ESTUARINE BUFFER ZONE OF PROTECTED AREA SPECIAL AREA FOR PROTECTING BIODIVERSITY X X X X X X B. POTENTIAL ENVIRONMENTAL IMPACTS WILL THE PROJECT CAUSE encroachment on historical/cultural areas; disfiguration of landscape by road embankments, cuts, fills, and quarries? encroachment on precious ecology (e.g. sensitive or protected areas)? X X No encroachment on historical / cultural sites or disfiguration of landscape is visualized. As is usual with any work involving quarrying, an environmental management plan for quarries will be required during construction. 161

162 Screening Questions Yes No Remarks X alteration of surface water hydrology of waterways crossed by roads, resulting in increased sediment in streams affected by increased soil erosion at construction site? Attachment 4 Largely no, Minor impacts that could be addressed by mitigation measures may occur deterioration of surface water quality due to silt runoff and sanitary wastes from worker-based camps and chemicals used in construction? increased local air pollution due to rock crushing, cutting and filling works, and chemicals from asphalt processing? risks and vulnerabilities related to occupational health and safety due to physical, chemical, biological, and radiological hazards during project construction and operation during project construction and operation? X X During construction period environmentally sound construction camps have to be designed with provision of proper sanitary facilities for workers. Suitable mitigation measures will be required to control the silt runoff. Temporarily X noise and vibration due to blasting and other civil works? X Temporarily dislocation or involuntary resettlement of people? X Limited dislocation and compulsory resettlement of people living in right-of-way? X Limited disproportionate impacts on the poor, women and children, Indigenous Peoples or other vulnerable groups? other social concerns relating to inconveniences in living conditions in the project areas that may trigger cases of upper respiratory problems and stress? hazardous driving conditions where construction interferes with pre-existing roads? X X X poor sanitation and solid waste disposal in construction camps and work sites, and possible transmission of communicable diseases (such as STI's and HIV/AIDS) from workers to local populations? X If site standards are not adhered to. creation of temporary breeding habitats for diseases such as those transmitted by mosquitoes and rodents? accident risks associated with increased vehicular traffic, leading to accidental spills of toxic materials? X X increased noise and air pollution resulting from traffic volume? X increased risk of water pollution from oil, grease and fuel spills, and other materials from vehicles using the road? X social conflicts if workers from other regions or countries are hired? X Potentially 162

163 Screening Questions Yes No Remarks large population influx during project construction and operation that causes increased burden on social infrastructure and services (such as water supply and sanitation systems)? X Attachment 4 risks to community health and safety due to the transport, storage, and use and/or disposal of materials such as explosives, fuel and other chemicals during construction and operation? X community safety risks due to both accidental and natural causes, especially where the structural elements or components of the project are accessible to members of the affected community or where their failure could result in injury to the community throughout project construction, operation and decommissioning. X Climate Change and Disaster Risk Questions The following questions are not for environmental categorization. They are included in this checklist to help identify potential climate and disaster risks. Is the Project area subject to hazards such as earthquakes, floods, landslides, tropical cyclone winds, storm surges, tsunami or volcanic eruptions and climate changes (see Appendix I) Could changes in temperature, precipitation, or extreme events patterns over the Project lifespan affect technical or financial sustainability (e.g., increased erosion or landslides could increase maintenance costs, permafrost melting or increased soil moisture content could affect sub0-grade). Are there any demographic or socio-economic aspects of the Project area that are already vulnerable (e.g., high incidence of marginalized populations, rural-urban migrants, illegal settlements, ethnic minorities, women or children)? Could the Project potentially increase the climate or disaster vulnerability of the surrounding area (e.g., by encouraging settlement in areas that will be more affected by floods in the future, or encouraging settlement in earthquake zones)? Yes No REMARKS X X X X Note: Hazards are potentially damaging physical events. 163

164 Attachment 4 Annex I: Environments, Hazards and Climate Changes Environment Natural Hazards and Climate Change Example Impact on Roads and Highways Arid/Semi-arid and desert environment Humid and sub-humid plains, foothills and hill country River valleys/ deltas and estuaries and other low-lying coastal areas Small islands Low erratic rainfall of up to 500 mm rainfall per annum with periodic droughts and high rainfall variability. Low vegetative cover. Resilient ecosystems & complex pastoral and systems, but medium certainty that 10 20% of drylands degraded; 10-30% projected decrease in water availability in next 40 years; projected increase in drought duration and severity under climate change. Increased mobilization of sand dunes and other soils as vegetation cover declines; likely overall decrease in agricultural productivity, with rain-fed agriculture yield reduced by 30% or more by Earthquakes and other geophysical hazards may also occur in these environments. More than 500 mm precipitation/yr. Resilient ecosystems & complex human pastoral and cropping systems % projected decrease in water availability in next 40 years; projected increase in droughts, heat waves and floods; increased erosion of loess-mantled landscapes by wind and water; increased gully erosion; landslides likely on steeper slopes. Likely overall decrease in agricultural productivity & compromised food production from variability, with rainfed agriculture yield reduced by 30% or more by Increased incidence of forest and agriculture-based insect infestations. Earthquakes and other geophysical hazards may also occur in these environments. River basins, deltas and estuaries in low-lying areas are vulnerable to riverine floods, storm surges associated with tropical cyclones/typhoons and sea level rise; natural (and humaninduced) subsidence resulting from sediment compaction and ground water extraction; liquefaction of soft sediments as result of earthquake ground shaking. Tsunami possible/likely on some coasts. Lowland agri-business and subsistence farming in these regions at significant risk. Small islands generally have land areas of less than 10,000km 2 in area, though Papua New Guinea and Timor with much larger land areas are commonly included in lists of small island developing states. Low-lying islands are especially vulnerable to storm surge, tsunami and sea-level rise and, frequently, coastal erosion, with coral reefs threatened by ocean warming in some areas. Sea level rise is likely to threaten the limited ground water resources. High islands often experience high rainfall intensities, frequent landslides and tectonic environments in which landslides and earthquakes are not uncommon with (occasional) volcanic eruptions. Small islands may have low adaptive capacity and high adaptation costs relative to GDP. Reduced availability of water for compaction during construction, increased sand on carriageways reduce road safety, road alignment may need to be reviewed where, for example, agriculturally productive zones are shifting. Increased landslides and mudflows disrupt road networks, Increased moisture content in the subsurface can result in increased penetration of water into the fill, which may also collapse, Reduced effectiveness of drainage which results in a reduction in the bearing capacity of the soils which become saturated Same as above Increased salinity increases corrosion of materials which can break-down, Road is eroded by increased wave action, Increased flooding from overtopping of sea-water over road or salt-water intrusion in to groundwater, Mountain ecosystems Accelerated glacial melting, rock falls/landslides and glacial lake outburst floods, leading to increased debris flows, river bank erosion and floods and more extensive outwash plains and, possibly, more frequent wind erosion in intermountain valleys. Enhanced snow melt and fluctuating stream flows may produce seasonal floods and droughts. Melting of permafrost in some environments. Faunal and floral species migration. Earthquakes, landslides and other geophysical hazards may also occur in these environments. 164 Damage to infrastructure from landslides and mudflows, permafrost melting causes damage to roads, glacial lake outbursts wash out river-crossings.

165 Attachment 4 Environment Natural Hazards and Climate Change Example Impact on Roads and Highways Volcanic environments Recently active volcanoes (erupted in last 10,000 years see Often fertile soils with intensive agriculture and landslides on steep slopes. Subject to earthquakes and volcanic eruptions including pyroclastic flows and mudflows/lahars and/or gas emissions and occasionally widespread ash fall. Damage and loss of roads, insecurity for roadworks crew and maintenance 165

166 Attachment 4 Annex 3 Terms of Reference Environmental Officer (EO) Scope of the assignment The Environmental Officer will be responsible for providing input and guidance on environmental management and safeguards to the contractors and assisting in building environmental management capacity the PMO. Specific focus of the assignment Specifically, the EO will: (i) monitor the update and implementation of sub-projects EMPs by the contractors; (ii) monitor baseline and routine environmental monitoring activities on the subprojects; (iii) monitor, together with Environmental Specialists of the Contractor and Construction Supervision Consultants, project sites against any unexpected environmental impacts; (iv) advise PMO s management on environment problems and/or requirements, and recommend mitigating measures; (v) report on EMP implementation and contractors compliance. (vi) take part in project performance monitoring and evaluation activities; and (ix) assess and prepare capacity building program on environmental issues at the regional offices of MPW. Qualifications The EO is a well qualified professional environmental expert with a bachelor degree in environment sciences and a minimum of 8 years experience in assessing environmental impact, and monitoring environment safeguards of road projects. Familiarity with ADB environmental guidelines is preferred. Experience in similar projects and geographic areas, proficiency in both written and spoken English, and knowledge of locally spoken languages are an advantage. 166

167 Attachment 5 PROJECT PROCUREMENT RISK ASSESSMENT REPORT FOR TRANCHE 4 EXECUTIVE SUMMARY The limited capacity of the agency to manage and complete the procurement within the desired time will put the timely project completion at medium risk. The fulltime procurement expert stationed at AFRM on long term basis and the procurement expert engaged by PMO will provide procurement capacity and hands-on training in procurement to MPW. I. INTRODUCTION The assessment was prepared in accordance with the Guidelines for Assessing Procurement Risk and Determining Project Procurement Classification. The proposed Tranche 4 will lead to better connectivity and efficiency of Afghanistan s road transport network, with particular focus on completing a northeastern corridor through the province of Badakhshan, from the provincial capital of Faizabad to the border with Tajikistan at Eshkashim. The project includes approximately 108 km of reconstructed national highway, specifically (i) the remaining unimproved section of the Faizabad to Eshkashim road (Section 2: Baharak to Eshkashim), (ii) associated community development infrastructure, (iii) strengthened capacity of AfRA, and (iv) improved efficiency for traffic traversing CAREC Corridors 5 and 6. The assessment was undertaken on November 2014 with the assistance of PMO procurement consultant, as part of fact-finding and preparation of PFR for Tranche 4, through interviews with counterpart and discussions with stakeholders. II. PROJECT PROCUREMENT RISK ASSESSMENT A. Strengths ADB has engaged a full-time procurement specialist stationed at AFRM to provide long term assistance under TA 8665-REG: strengthening the capacity of integrity and procurement in Central and West Asia, to develop capacity of procuring agency of the borrower. The Procurement expert engaged under the project management office of MPW will supplement the capacity development through hands-on training to PMO and BEC. B. Weaknesses The current arrangement of ad-hoc bid opening committee and a different ad-hic bid evaluation committee coupled with limited understanding of ADB procurement guidelines and procedures contributed to delayed contract award. C. Procurement Risk Assessment and Management Plan (P-RAMP) See Attachment B III. PROJECT SPECIFIC PROCUREMENT THRESHOLDS International Competitive Bidding for Goods: US$ 2,000,000 Shopping for Goods: Up to US$ 100,000 International Competitive Bidding for Works: US$ 5,000,000 and Above Shopping for Works: Up to US$ 100,

168 Attachment 5 IV. PROCUREMENT PLANS The Procurement Plan is presented in FAM. Advance contracting is recommended. The is no retroactive financing under Tranche 4 V. CONCLUSION The availability of long term and fulltime procurement specialist at AFRM and PMO will ensure compliance of procurement to ADB procurement guidelines and approved bidding documents and completion of award of contract on timely fashion. Attachments: Completed questionnaires, P-RAMP 168

169 Attachment 5 PROJECT PROCUREMENT RISK ASSESSMENT FOR TRANCHE 4 QUESTION A. ORGANIZATIONAL AND STAFF CAPACITY PROCUREMENT DEPARTMENT/UNIT A.1 Does the agency or Government have a Procurement Committee that is independent from the head of the agency? A.2 Does the agency have a procurement department/unit, including a permanent office that performs the function of a Secretariat of the Procurement Committee? A.3 If yes, what type of procurement does it undertake? A.4 How many years experience does the head of the procurement department/unit have in a direct procurement role? A.5 How many staff in the procurement department/unit are: i. full time ii. part time iii. seconded RESPONSE Yes Yes No Information 5 Years Full time: 10 years Part Time: Nil Seconded: Nil 12 RISK A.6 Do the procurement staff have a high level of English language proficiency (verbal and written)? A.7 Are the number and qualifications of the staff sufficient to undertake the additional procurement that will be required under the proposed project? A.8 Does the unit have adequate facilities, such as PCs, internet connection, photocopy facilities, printers etc. to undertake the planned procurement? A.9 Does the agency have, or have ready access to, a procurement training program? A.10 At what level does the department/unit report (to the head of agency, deputy etc.)? No * No * Yes No * Minister/Dy. Minister 12 Questions indicated with * are associated with potentially High or Substantial risks due to the impact being High, therefore the strategy for managing those risks should be addressed in the Project Procurement Risk Analysis. 169

170 Attachment 5 QUESTION RESPONSE RISK A.11 Do the procurement positions in the agency have job descriptions, which outline specific roles, minimum technical requirements and career routes? A.12 Is there a procurement process manual for goods and works? A.13 If there is a manual, is it up to date and does it cover foreign-assisted projects? A.14 Is there a procurement process manual for consulting services? A.15 If there is a manual, is it up to date and does it cover foreign-assisted projects? PROJECT MANAGEMENT UNIT A.16 Is there a fully (or almost fully) staffed PMU for this project currently in place? A.17 Are the number and qualifications of the staff sufficient to undertake the additional procurement that will be required under the proposed project? A.18 Does the unit have adequate facilities, such as PCs, internet connection, photocopy facilities, printers etc. to undertake the planned procurement? A.19 Are there standard documents in use, such as Standard Procurement Documents/Forms, and have they been approved for use on ADB funded projects? Yes Yes No Yes Yes Yes * Yes * Yes Yes * A.20 Does the agency follow the national procurement law, procurement processes, guidelines? A.21 Do ToRs for consulting services follow a standard format such as background, tasks, inputs, objectives and outputs? No * Yes A.22 Who drafts the procurement specifications? A.23 Who approves the procurement specifications? A.24 Who in the PMU has experience in drafting bidding documents? No information Minster/Dy. Minister None * A.25 Are records of the sale of bidding Yes * 170

171 Attachment 5 QUESTION RESPONSE RISK documents immediately available? A.26 Who identifies the need for consulting services requirements? A.27 Who drafts the Terms of Reference (ToR) A.28 Who prepares the request for proposals (RFPs) B. INFORMATION MANAGEMENT No information No information No information B.1 Is there a referencing system for procurement files? B.2 Are there adequate resources allocated to record keeping infrastructure, which includes the record keeping system, space, equipment and personnel to administer the procurement records management functions within the agency? B.3 Does the agency adhere to a document retention policy (i.e. for what period are records kept)? B.4 Are copies of bids or proposals retained with the evaluation? B.5 Are copies of the original advertisements retained with the precontract papers? B.6 Is there a single contract file with a copy of the contract and all subsequent contractual correspondence? B.7 Are copies of invoices included with the contract papers? B.8 Is the agency s record keeping function supported by IT? Yes Yes * Yes. No information * yes yes Yes Yes No C. PROCUREMENT PRACTICES Goods and Works C.1 Has the agency undertaken procurement of goods or works related to foreign assistance recently (last 12 months or last 36 months)? If yes, indicate the names of the development partner/s and project/s. C.2 If the answer is yes, what were the major challenges faced by the agency? Yes * Importing Goods * C.3 Is there a systematic process to 171

172 Attachment 5 QUESTION RESPONSE RISK identify procurement requirements (for a period of one year or more)? C.4 Is there a minimum period for the preparation of bids and if yes, how long? C.5 Are all queries from bidders replied to in writing? C.6 Does the bidding document state the date and time of bid opening? No Yes. 3 months * yes * Yes * C.7 Are bids opened in public? Yes * C.8 Can late bids be accepted? No * C.9 Can bids (except late bids) be rejected at bid opening? C.10 Are minutes of the bid opening taken? C.11 Are bidders provided a copy of the minutes? C.12 Are the minutes provided free of charge? C.13 Who undertakes the evaluation of bids (individual(s), permanent committee, ad-hoc committee)? C.14 What are the qualifications of the evaluators with respect to procurement and the goods and/or works under evaluation? C.15 Is the decision of the evaluators final or is the evaluation subject to additional approvals? C.16 Using the three worst-case examples in the last year, how long from the issuance of the invitation for bids can the contract be awarded? C.17 Are there processes in place for the collection and clearance of cargo through ports of entry? C.18 Are there established goods receiving procedures? C.19 Are all goods that are received recorded as assets or inventory in a register? C.20 Is the agency/procurement department familiar with letters of credit? C.21 Does the procurement department register and track warranty and latent No * Yes * Yes * Yes * Ad-hoc committee Not relevant * No * One year No Yes Yes Yes Yes 172

173 Attachment 5 QUESTION RESPONSE RISK defects liability periods? Consulting Services C.22 Has the agency undertaken foreignassisted procurement of consulting services recently (last 12 months, or last 36 months)? (If yes, please indicate the names of the development partner/s and the Project/s.) C.23 If the above answer is yes, what were the major challenges? C.24 Are assignments and invitations for expressions of interest (EOIs) advertised? C.25 Is a consultants selection committee formed with appropriate individuals, and what is its composition (if any)? C.26 What criteria is used to evaluate EOIs? C.27 Historically, what is the most common method used (QCBS, QBS, etc.) to select consultants? C.28 Do firms have to pay for the RFP document? C.29 Does the proposal evaluation criteria follow a pre-determined structure and is it detailed in the RFP? C.30 Are pre-proposal visits and meetings arranged? C.31 Are minutes prepared and circulated after pre-proposal meetings? C.32 To whom are the minutes distributed? C.33 Are all queries from consultants answered/addressed in writing? C.34 Are the technical and financial proposals required to be in separate envelopes and remain sealed until the technical evaluation is completed? Yes/ADB * Nil * Yes * Yes As per ADB Guidelines QCBS * No * Yes * Yes Yes * All Firms * Yes * Yes * C.35 Are proposal securities required? No * C.36 Are technical proposals opened in public? C.37 Are minutes of the technical opening distributed? Yes * Yes * 173

174 Attachment 5 QUESTION RESPONSE RISK C.39 Who determines the final technical ranking and how? C.40 Are the technical scores sent to all firms? C.41 Are the financial proposal opened in public? C.42 Are minutes of the financial opening distributed? C.43 How is the financial evaluation completed? C.44 Are face to face contract negotiations held? C.45 How long after financial evaluation is negotiation held with the selected firm? C.46 What is the usual basis for negotiation? C.47 Are minutes of negotiation taken and signed? C.48 How long after negotiation is the contract signed, on average? C.49 Is there an evaluation system for measuring the outputs of consultants? CSC and as per SES and PES rating * Yes * Yes * Yes * As per ADB evaluation procedure and template * Yes * Within 14 days of receipt of ADB approval of final ranking. Technical and financial proposal Yes * Within 14 days Yes Payments C.50 Are advance payments made? Yes C.51 What is the standard period for payment included in contracts? C.52 On average, how long is it between receiving a firm s invoice and making payment? C.53 When late payment is made, are the beneficiaries paid interest? D. EFFECTIVENESS D.1 Is contractual performance systematically monitored and reported? D.2 Does the agency monitor and track its contractual payment obligations? D.3 Is a complaints resolution mechanism described in national procurement documents? 28 days 28 days No Yes Yes Yes 174

175 Attachment 5 QUESTION RESPONSE RISK D.4 Is there a formal non-judicial mechanism for dealing with complaints? D.5 Are procurement decisions and disputes supported by written narratives such as minutes of evaluation, minutes of negotiation, notices of default/withheld payment? E. ACCOUNTABILITY MEASURES E.1 Is there a standard statement of ethics and are those involved in procurement required to formally commit to it? E.2 Are those involved with procurement required to declare any potential conflict of interest and remove themselves from the procurement process? E.3 Is the commencement of procurement dependent on external approvals (formal or de-facto) that are outside of the budgeting process? E.4 Who approves procurement transactions, and do they have procurement experience and qualifications? E.5 Which of the following actions require approvals outside the procurement unit or the evaluation committee, as the case may be, and who grants the approval? a) Bidding document, invitation to prequalify or RFP b) Advertisement of an invitation for bids, pre-qualification or call for EOIs Yes Yes * Yes * Yes * Yes Minister/Dy. Minister * MPW Minister MPW Minister c) Evaluation reports MPW Minister * d) Notice of award MPW Minister * e) Invitation to consultants to negotiate MPW Dy. Minister f) Contracts MPW Minister * E.6 Is the same official responsible for: (i) Yes * authorizing procurement transactions, procurement invitations, documents, evaluations and contracts; (ii) authorizing payments; (iii) recording procurement transactions and events; and (iv) the custody of assets? E.7 Is there a written auditable trail of Yes procurement decisions attributable to individuals and committees? 175

176 Attachment 5 PROCUREMENT RISK ASSESMENT AND RISK MANAGEMENT PLAN FOR TRANCHE 4 Risk Description Risk Mitigation Measures or Risk Management Weak capacity of MPW to evaluate High ADB has engaged a full-time procurement bids, prepare bid evaluation report and contract management, causing delays in award of contracts. Even though the procurement regulatory environment in Afghanistan has advanced significantly, many MPW staff lack basic procurement skills specialist stationed at AFRM to provide long term assistance under the RETA Strengthening the Capacity of Integrity and Procurement in Central and West Asia to develop capacity of procuring agency of the borrower. The Procurement expert engaged under the MFF for the PMO will further supplement capacity development through handson and therefore cannot work training to PMO and BEC. The Procurement effectively in the new emerging environment. expert will also support PMO with consultant recruitment. The current arrangement of ad-hoc bid opening committee and a different ad-hoc bid evaluation committee contribute to delayed contract award. Medium Guidelines for Bid Evaluation Process were signed between ADB and MPW in July Henceforth, MPW s BEC shall constitute a TWG, including two focal persons from ADB, to assist the BEC carry out detailed bid evaluation. The procurement expert engaged by PMO shall provide hands-on training to TWG and BEC and ensure that the Guidelines are followed. The Full-time procurement consultant stationed in AFRM shall provide additional guidance. Weak performance of consultants/ contractors adversely impacts effective delivery of project outputs. Especially, once locked in with poorly performing contractors and consultants, it is extremely costly to terminate the contract and bring a new contractor on board. A few construction firms bid for a given number of road projects; collusion among bidders for construction contracts is a concern. Medium Medium MPW will put strong emphasis on screening incompetent contractors through rigorous technical evaluations. As noted above, BEC shall constitute a TWG to assist the BEC carry out detailed bid evaluation. Effective M&E will be provided for contractor bids, contracts awarded, and realized revenue and profits of service providers through standardized reporting and audits. Overall Medium Risk 176

177 Attachment 6 TERMS OF REFERENCE FOR CONSULTING SERVICES FOR PROJECT MANAGEMENT AND CONSTRUCTION SUPERVISION A. Introduction 1. The Ministry of Public Works (MPW) is implementing a number of highway projects funded by the Asian Development Bank (ADB) that involve the design, rehabilitation and reconstruction of priority sections of the nation s transport network. For this purpose, civil works contractors have been engaged, selected on the basis of International Competitive Bidding. The services of Project Management and Construction Supervision (PMCS) consultants to fulfil the role of the Engineer on behalf of the Employer are required to assist MPW s management and administration of the projects and to supervise the implementation of highway construction and associated activities. 2. These Terms of Reference (TOR) are for the role of PMCS Consultant (the Consultant) for the Construction Supervision of the Reconstruction and Rehabilitation of Fayzabad- Eshkashim Road (the Project). The road section is approximately 108 km in length. MPW is the Executing Agency (EA) for the Project. 3. The scope of the civil works contractor s (the Contractor) contract includes: a review and update of the detailed engineering design for the road and all associated works, provided by the EA, following detailed site investigations and survey; construction of the road including bridges, structures and other incidental works in accordance with the Afghan Interim Road Standards and the approved design, technical specifications and environmental monitoring plan: and, the implementation of a community outreach program amongst impacted communities along the road alignment. 4. The scope of the PMCS consulting services (the Services) will include: approving the final engineering design of the Project for construction; certifying the works for quality and quantity; contract administration; supervising the implementation of the environmental monitoring plan; updating and assisting the EA with implementation of the land acquisition and resettlement plan; directing and supervising the community outreach program; and, benefit monitoring and evaluation. B. Objective 5. The primary objective of the Services is to advise and assist the EA to implement the Project in a timely and effective manner including: (i) Administering and supervising the civil works contract (the Contract) in accordance with the FIDIC Conditions of Contract for Construction, Multilateral Development Bank Harmonized Edition, June 2010, as modified by the Consultant s contract. (ii) Ensuring that the Contract is implemented in accordance with the scope of works, the detailed engineering design, the specifications and approved environmental, social safeguards and security plans, and (iii) Managing a community outreach program along the road alignment. C. Scope of Work 6. The Consultant will comprise two teams: Team1 - overall project management, design review and construction supervision team; and Team 2 - community outreach program team. 177

178 Attachment 6 The Consultant will appoint a Project Manager to be responsible for coordination with the Government, and overall management and supervision of the Project. 7. The scope of Services is as follows: (i) Overall project management, reporting to the EA and ADB, coordinate with local communities and other stakeholders in the project area and, with the Ministry of Interior (MOI) and international security forces on security issues. (ii) Review and approve the Detailed Engineering Design (DED), including all drawings, specifications and supporting calculations and documentation for the Project submitted by the Contractor. (iii) Act as the Engineer in administering the Contract. Advise the EA, as the Employer, on all matters concerning implementation of the Contract including, but not limited to the progress of the civil works (the Works) and issues arising, certification of the Works, variations to the Works and the Contractor s contract, the settlement of disputes and, arbitration or litigation if required. (iv) Monitor, inspect and certify the temporary and permanent Works ensuring they are constructed in accordance with the provisions of the Contract, including the Contractor s approved Quality Assurance Plan, Health and Safety Plan, Environmental Management Plan (EMP) and Method Statements. (v) Update if necessary and assist the EA to implement the approved Project Land Acquisition and Resettlement Plan (LARP). (vi) Design and implement a Project Performance Management System (PPMS). (vii) Coordinate the development of the Project Security Plan (the Security Plan) and supervising its implementation. (viii) Assessment and design of a Community Outreach Program and supervising implementation by the Contractor. 8. The DED of the Works, including fully detailed drawings, technical specifications and bills of quantity, will be prepared by the Contractor based on the preliminary design provided by the EA. The Contractor is also responsible for: undertaking all required geotechnical investigation to check the design of all structures and embankments: checking the accuracy of the topographic survey and design levels; undertaking any redesign required; and, for ensuring the completeness of the DED and its suitability for construction. Team 1 will review the DED submitted by the Contractor. The tasks will include the following: (i) Establish the schedule, methods, and procedures for the review of the DED of the Works, submitted by the Contractor. (ii) Review the DED for compliance with the Afghan Interim Road Standards and fitness for purpose in accordance with national and international design standards. Complete the review within 30 days after submission of the documents to enable finalization and commencement of construction. Prepare a report to the EA with recommendations on the suitability of the DED for construction and any further investigations or redesign work required. 178

179 Attachment 6 (iii) Provide periodic status reports to the client and ADB on the design and review activities as measured against the approved schedule, identify any problems and difficulties encountered and propose solutions. 9. Team 1 will carry out Contract Administration. (i) Under the Contract, the EA will be the Employer and the Consultant will act as the Engineer. The Consultant will oversee construction and ensure that the Works are undertaken in accordance with the provision of the Contract. The Consultant will nominate an engineer s representative who will be a full-time resident in the project area. (ii) The Consultant will also conduct the following activities: a) Inspect the Contractor s construction equipment, results of material and soil tests, safety of the works, property and personnel; b) Check, update, and verify construction specifications before commencement of construction works. c) Inspect and test all materials and works to ensure compliance with specifications and giving immediate notice to the Contractor in the event that such materials and works fail to comply with the specifications; d) Verify Contractor performance and report progress and problems in a timely manner, including quality control reports, quantity survey records, requests for variation or change orders, requests for time extension, and Contractor s claims and invoices; e) Undertake supervision of the Works; prepare and issue the following reports, whose format and content should be acceptable to the Employer and ADB: an inception report, a brief monthly progress report, a detailed quarterly report, and a detailed project completion report (PCR); f) Review and verify any proposed change orders by the Contractor and make recommendations to the Employer and ADB; g) Check that as built drawings are prepared by the Contractor for the Works as construction processes; h) Certify work volume and process interim and final payments of the Contractor for works, security, and community outreach program; i) Prepare and issue the Taking-Over Certificate (or partial certificates) including lists of defects to be rectified in accordance with the Contract; j) Provide inspection services during Defects Notification Period and upon rectification of all defects issue the Performance Certificate (or certificates) and the Final Payment Certificate(s) in accordance with the Contract; k) Ensure that the construction methods proposed by the Contractor for carrying out the works are satisfactory, with particular references to the technical requirements of sound environmental standards on the basis of ADB s Environmental Guidelines for Selected Infrastructure Development Project (Highway and Roads); inspection of Contractor s construction equipment; safety of the works, property, personnel, and general public; and the recommendations of the environmental management plan (EMP); 179

180 Attachment 6 l) Supervise and monitor the implementation of any environmental mitigation measures required and in the event of occurrence of any unexpected environmental impacts, coordinate with the Contactor to provide mitigation measures; m) Review the LARP and update as necessary and assist the EA with implementation ensuring compliance with the ADB s Policy on Involuntary Resettlement. n) Ensure minimum disruption to local settlements by approving Contractor s work program, including monitoring the impacts of construction work on local settlements, and reporting impact monitoring to the Employer; o) Ensure that no child labor is used for execution of the Works contract as required by the Contract; p) Monitor the implementation of the health and safety program at camp site including the information and education campaign on sexually-transmitted diseases and HIV/AIDS (human immunodeficiency virus/acquired immunodeficiency syndrome) as required by the Contract; q) Ensure that road safety design requirements are incorporated in the design of the project road, and implemented during the execution of the Works in accordance with the requirements in the Contract; and r) Prepare a Project Completion Report (PCR) after physical project completion. 10. Team 1 will establish a Project Performance Monitoring System (PPMS) in accordance with the project framework to carry out the following activities: (i) Identify performance indicators to be monitored during the implementation of the Project including poverty, socioeconomic status, gender development, employmentgeneration among others to refugees and ex-combatants, and other social and economic development activities; (ii) Establish systems for collecting data and statistics for monitoring; (iii) Carry out a baseline survey on performance indicators; (iv) Collect required data and undertake other relevant surveys before construction and immediately after completion of the Project; and (v) Incorporate findings and supporting data in the PCR in accordance with a schedule and terms of reference to be mutually agreed by the Government and ADB. 11. Team 2, the community outreach program team, will include both international and national community development specialists. The community outreach program will be implemented as part of the consensus building in the Project Area and to foster increased engagement of the roadside communities in the Project. Team 2 will be responsible for guiding the Contractor s preparation of the community outreach program, planning consultation and participation programs with the communities, identifying and preparing activities, approving the program, and supervising the implementation of the program by the Contractor. 12. Community outreach will take a two stage approach. The first stage involves community mobilization of all roadside communities by a dedicated NGO to achieve a benchmarked level of water and sanitation awareness. The outcome of this first stage will be that a number of villages will be awarded Open Defecation Free (ODF) status, which entitles them to further Project assistance for community infrastructure. This second stage will be managed by the Contractor 180

181 Attachment 6 under the supervision of the Engineer, and based on community-prioritized demand, will support basic infrastructure investments such as rural access roads, culverts/small bridges, schools, clinics, small-scale irrigation schemes, clean drinking water supply facilities, or access to off-grid energy alternatives up to a pre-determined financial limit per village. The Engineer will assist and oversee the Contractor in conceptualizing the overall scope of the community development component and confirming the selected sub projects through surveys, including a needs assessment in each qualifying road side community. The Engineer will approve the final community infrastructure designs and oversee implementation. 13. The contractor will coordinate with local communities and the Engineer, and implement this component using locally based firms or NGOs as required. In addition to this component, the Contractor is required to hold consultations with communities along the project route and provide employment/training opportunities, to ensure local communities both benefit from, and support the project. The Engineer will verify and document such consultations, employment and training opportunities. The program will be implemented in coordination with other similar activities in the project area being implemented by other agencies such as the World Bank, Provincial Reconstruction Team, USAID and local NGOs. 12. The Consultant will obtain the prior approval of the EA and ADB for the following matters as specified in the Works contract: (i) (ii) (iii) (iv) (v) (vi) Approval of subletting of any part of works; Certification of additional costs; Determination of extensions of time; Endorsement of contract change orders; Fixing of rates or prices for new items; and Approval of the Project Security Plan. D. Schedule and Personnel 13. The consulting services will be carried out by an international firm(s) in association with national or regional consultants, to be selected by the EA in accordance with ADB s Guidelines on the Use of Consultants (2013), as amended from time to time. 14. The Services will be provided in Afghanistan. 15. The Consultant will establish a site office in the field in facilities provided by the Contactor. 16. The Contract will be of 42 months duration. The estimated person-months of key international and national consultant inputs are shown below. The Consultant is requested to propose the assignment of experts in accordance with the objectives and scope of services. Key Expertise No Total Input (PM) A. International Consultants Team 1: Project Management, Design Review and Construction Supervision 1. Team Leader/Senior Highway Engineer Senior Bridge/Structurure Engineer Senior Material/Pavement Engineer

182 Attachment 6 Key Expertise No Total Input (PM) 4 Senior Resident Engineer Contract Specialist Environment Specialist Resettlement Specialist Security Coordinator 1 9 Team 2: Community Outreach 9. Community Development Specialist 1 9 Subtotal (A): International Consultants 165 B National Consultants Team 1: Project Management, Design Review and Construction Supervision 1. Resident Engineer Bridge/Structure Engineer Material/Pavement Engineer Road Design Engineer Site Inspector Accountant Quantity Surveyor Resettlement Specialist Environmental Specialist Benefit Monitoring and Evaluation Specialist Security Officer 1 38 Team 2: Community Outreach 12. Community Development Specialist 2 52 Subtotal (B): National Consultants 538 TOTAL (A+B) The Consultant shall nominate any support staff positions they require in their Personnel Schedule. E. Qualification Requirements and Responsibilities of Key Personnel 18. All team members, both international and national, must be proficient in both written and spoken English. The qualification requirements of each team member follow. Team Leader/Senior Highway Engineer [International, 36 person-months]: The Team Leader is a civil engineer or highway engineer preferably with a postgraduate degree in road engineering or associated fields, who: (i) is a recognized qualified expert in road construction supervision preferably with 20 years of experience or more; (ii) has experience in managing multidisciplinary and multinational teams for preferably three such assignments; and (iii) has a proven track record of successfully completing assignments of a similar nature including hands-on experience in maintaining records, advising with the day-to-day coordination of works, supervising and certifying construction in accordance with contract conditions, preparing various project reports, and coordinating the review and update of designs and cost estimates as required; (iv) is fluent in English; and (v) has regional experience in Central Asia. The Team Leader shall function as the Engineer s Representative in administering the Contract. 182

183 Attachment 6 The Team Leader/Senior Highway Engineer shall manage and coordinate the consulting team to ensure the Project is implemented in accordance with the Contract including: (i) (ii) Review the DED submitted by the Contractor in accordance with the design standards, criteria and design provided by the EA. Activities will include, but not be limited to, ensuring that: a) Hydrological and hydraulic studies have been carried out in accordance with AASTO for all drainage structures; b) Detailed analysis and design has been undertaken for all embankments of height greater than 6 meters including requirements for protection works and traffic safety features; c) Any sections with geometric deficiencies, are identified and suitable measures for improvement have been suggested for implementation; d) The pavement design takes appropriate account of specific site conditions such as terrain and topographic conditions, altitude effects etc. so that the pavement is able to perform well for the design traffic intensity and loads and required service life; e) The design takes appropriate account of specific weather factors including heavy rainfall, frost action, intensive snow and avalanche activity, thermal stresses due to temperature differences between day and night, damage by tracked vehicles during snow clearance operations etc.; f) The Employer s Requirements in the Contract have been duly accounted for in the DED. Administer and supervise the temporary and permanent works in accordance with the provisions of the Contract; including: a) Ensure that the Notice to commence has been issued; b) Review and agree with the Employer the Contractors work programs and subsequently monitoring the construction progress in accordance with Contract requirements; c) Ensure that the Contractor is granted possession of site in accordance with the agreed programs or otherwise providing advance notice to the EA of possible delays due to lack of possession; d) Review all surveys, field investigations, designs, drawings and specifications, recommending any changes needed to provide more cost-effective solutions, and approving the design, drawings and changes in the specification; e) Maintain close liaison with the EA and other relevant agencies including the police, other government and regional authorities and, local stakeholders; f) Measure the Works agreeing and certifying interim and final payment certificates for submission to the EA, and assisting the EA in preparing withdrawal documentation to ADB; g) Assess and, where appropriate, make recommendations on applications for extension of time, claims for additional payment and other contractual disputes issuing site instructions, variation orders, provisional sum orders and day works orders, as appropriate; 183

184 Attachment 6 (iii) h) Monitor the Contractor s laboratory testing and carrying out Independent testing as required; i) Check and approve the Contractor s working and as built drawings; j) Prepare a final report for the Contract, which will be a compilation and condensation of data presented in regular monthly and quarterly progress reports, together with copies of as built drawings within three months of the issue of the Defects Liability Certificate(s); k) Develop training programs for EA staff and provide on-the-job training on construction supervision including contract administration, quality control, monitoring and evaluation, environmental monitoring and the project performance monitoring system; l) Assist the EA to update and implementation the LARP including reporting; m) Prepare and implement the PPMS in consultation with ADB and the EA; n) Ensure that the construction methods as proposed by the Contractor comply with the requirements of the approved EMP, including implementation of the Environmental Monitoring Plan; o) Monitor the implementation of the health and safety program at camp site with the including the information and education campaign on sexually-transmitted diseases including human immunodeficiency virus/acquired immunodeficiency syndrome (HIV/AIDS) as required by the Contract; p) Ensure that no child labour is employed under the Contract; q) Assess and design for approval by the EA and ADB the Community Outreach Program and supervise implementation by the Contractor; r) Coordinate the preparation, approval by the EA and ADB of the Project Security Plan and supervise implementation by the Contractor; s) Prepare and implement the Consultant Security Plan; t) Prepare monthly progress reports, in a form agreed with the EA and ADB and submit these within 10 days of the end of the month to which they refer; u) Prepare quarterly progress reports, in a form agreed with the EA and ADB and submit these within 1 month of the end of the reporting period; these report are to cover physical progress, financial progress, loan withdrawal, compliance with the environmental mitigation requirements, results of the project performance monitoring system and result of other environmental monitoring; Advise the EA on all matters concerning implementation of the Contracts including quality control, work progress, implementation issues, and arbitration or litigation etc. Senior Bridge/Structure Engineer [International, 30 person-months]: The Bridge/Structure Engineer shall have a degree in civil engineering, with preference being given to candidates holding a postgraduate degree in structural engineering. He/she should preferably have 12 years of experience or more, of which ten years shall be in design of bridges and other structures, demonstrating: (i) experience in design and construction of bridges and other road project structures; (ii) experience on various structural designs and documentations including design of all required earthworks, retaining walls, drainage and any other required structures; and (iii) supervision of the work of field teams with respect to certifying construction 184

185 Attachment 6 in accordance with contract conditions; (iv) is fluent in English; and (v) has regional experience in Central Asia. Detailed tasks include: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) Coordination of design review and construction supervision of all Project structural elements, including temporary works, earthworks, bridges, retaining walls, drainage culverts and any other structures including the management of the Structural/Bridge engineering team in coordination with the Team Leader and the Senior Resident Engineer. Lead the design review of all earthworks and structural elements in the DED. Review and approve the Contractor s proposed geotechnical investigations for earthworks and structures. Review and approve the design of temporary works, including shuttering and scaffolding, for suitability and safety during construction. Review and approve the construction schedule for all earthworks and structural elements, in consultation with the Materials/Pavement Engineer. Review and approve the Contractor s proposed quality assurance and quality control systems and procedures for earthworks and structural works. Review and approve quality control test results and certificates for all earthworks and structural elements. Establish the schedule, methods and procedures for the construction supervision of all earthworks and structural elements. Senior Material/Pavement Engineer [International, 30 person-months]: The Senior Material/Pavement Engineer shall have a degree in civil engineering, preferably with 12 years of experience or more in major road construction works with a focus on pavement engineering and materials testing. Relevant experience should include: (i) supervising the Contractor s compliance with material specifications and testing; (ii) providing input to the design team to source suitable materials; (iii) engineering design of flexible Asphaltic Concrete (AC) pavements, (iv) coordinating and supervising the work of field teams in supervising and certifying construction in accordance with contract conditions including acceptance standards of materials, approval of source supply, establishing QA/QC procedures, setting up laboratories, mix designs and testing procedures; (v) fluency in English; and (vi) regional experience in Central Asia. Detailed tasks include: (i) Coordination of design review and construction supervision of all Project pavements, including the management of the Materials/Pavement engineering team in coordination with the Team Leader and the Senior Resident Engineer. (ii) Lead the design review of pavement works in the DED including proposed material specifications and sources and asphalt and concrete mix designs. (iii) Review and approve the Contractor s proposed geotechnical investigations for pavements and pavement materials. (iv) Liaise with the Bridge/Structural Engineer on the geotechnical requirements for bridge design. (v) Review and advise on all geotechnical matters during construction. (vi) Review and approve the construction schedule for all pavement works. 185

186 Attachment 6 (vii) Lead the review and approval of the Contractor s proposed quality assurance and quality control systems and procedures for all materials and works, including proposed sampling and testing procedures, laboratory establishment and procedures and reporting of results. (viii) Review and approve quality control test results and certificates for all pavement materials and works. (ix) Establish the schedule, methods and procedures for the construction supervision of all pavement works. Senior Resident Engineer [International, 30 person-months]: The Senior Resident Engineer is a highway engineer, who: (i) holds a degree in civil or highway engineering; (ii) preferably has 15 years of experience or more with 10 years of experience in similar positions and assignments involving design and construction and management of large road projects, as well as contract administration; (iii) can demonstrate three previous assignments as resident engineer for the construction of flexible AC pavements for highways or airport runways (iv) is familiar with various international standards for design and construction including staging of works and various methods of construction including: temporary works, construction planning, scheduling and progress monitoring, implementing a security plan, assigning equipment and personnel, testing and field trials, and as-built drawings; (v) is fluent in English; and (vi) has regional experience in Central Asia. Detailed tasks include: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) Ensure that the Contractor is granted possession of the Site in accordance with the agreed program. Provide assistance to the Team Leader for the review and approval of the DED. Liaise with the appropriate authorities to ensure that all affected utility services are promptly relocated. Review and approve the Contractor s traffic management plans. Review and approve the Contractor s proposals for UXO clearance and supervise implementation Carry out checks on the Contractor s setting out and ensuring that the Works are carried out in accordance with the drawings and other design details. Maintain full and detailed permanent site records including site correspondence, survey data, quality acceptance data, site diaries, measurement and certification, minutes of meetings and records of all other contractually relevant matters. Monitor the Contractors quality control procedures and laboratory testing and carrying out Independent testing as required. Ensure that Works are executed in accordance with all provisions of the Contract, including those relating to standards of materials and workmanship, health and safety requirements and environmental protection requirements. Measure the works, agree and certify interim and final payment certificates for submission to the Employer in consultation with the Team Leader, and assisting the Employer in preparing loan withdrawal documentation to ADB. Assist Team Leader in administrating, assessing and, where appropriate, making recommendations on applications for extension of time, claims for additional payment and other contractual disputes. 186

187 Attachment 6 (xii) (xiii) (xiv) (xv) (xvi) (xvii) Maintaining regular estimates of the cost to completion and time to completion for the Contracts. Reviewing the Contractors proposed program and technical recourses for routine, emergency and winter maintenance and provide training to EA staff who will take over quality control and administration of maintenance. Assist land acquisition and resettlement activities being undertaken by the Government and the provincial authorities in cooperation with the Resettlement Specialists. Prepare, with the assistance of Environmental Specialists, environmental monitoring reports for inclusion in the quarterly and annual reports. Monitor the implementation of the health and safety program on Site including the information and education campaign on sexually transmitted diseases including HIV/AIDS as required by the Contract. Ensure that no child labour is employed under the Contract. Contract Specialist (on-call) [International, 10 person-months]: The Contract Specialist will have a degree in civil engineering preferably with 12 years of experience or more in procurement/contract management in either the public or private sector such that the focus of the experience is on: (i) international development assistance funded road projects executed under FIDIC conditions of contract; and (ii) the preparation, checking, processing and issuance of variation orders, claims and their disposal, etc. Detailed tasks include: (i) (ii) (iii) (iv) Assist the Team Leader, the EA and the Contractor to establish responsibilities and procedures for the management and administration of the Contract. Review the Contractor s insurance policies and performance and advance payment sureties for compliance with the Contract. Assist the Team Leader to administer the Contract in accordance with agreed procedures, including reviewing and making recommendations on any applications by the Contractor for contract variations including claims for extension of time or additional payment and other contractual disputes arising. Advise and assist the Employer in arbitration and litigation cases. Environment Specialist [International, 3 person-months]: The Environment Specialist will have a degree in engineering, science or equivalent and preferably a postgraduate degree in environmental studies. The specialist will preferably have 10 years of experience or more in the development, implementation and monitoring of environmental management and monitoring plans in accordance with multilateral development organisation requirements. Previous international experience as an Environmental Specialist on major road projects is essential. Detailed tasks include: (i) Review the Initial Environmental Examination (IEE) and update as necessary, with particular reference to the Environmental Management Plan (EMP). Refer any amendments to the ADB for approval. (ii) Provide training to the staff of the EA, the Contractor and the Consultant on: the requirements of the EMP including specific environmental mitigation measures and monitoring activities to be implemented; and, the roles and responsibilities of all parties. 187

188 Attachment 6 (iii) Ensure that the construction methods proposed by the Contractor are satisfactory, with particular reference to the technical requirements of ADB s Environmental Guidelines for Selected Infrastructure Development Projects (Highway and Roads). (iv) Undertake periodic review and reporting on the implementation of the EMP. (v) Inspect the Contractor s construction equipment; safety of the works, property, personnel, and general public; and the recommendations of the environmental management plan (EMP). (vi) Supervise and monitor the implementation of any environmental mitigation measures required and in the event of occurrence of any unexpected environmental impacts, coordinate with the Contactor to provide mitigation measures. Resettlement Specialist [International, 8 person-months]: The Resettlement Specialist will have a degree in the social sciences, land administration, or equivalent disciplines. Experience should preferably illustrate: (i) 10 years of experience or more with the management, preparation and execution of resettlement programs in developing countries funded by multilateral donors, particularly those funded by the ADB; (ii) experience in the design and implementation of capacity building and training programs; (iii) verbal and written fluency in English; and (iv) experience in post-conflict countries. Experience in the Central Asia region will be an advantage. Detailed tasks include: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) Assist the EA to review and understand all laws and regulations pertaining to land acquisition, resettlement, and assistance to disadvantaged citizens, and ensure that local governments and affected communities understand the requirements of ADB policy and LARP requirements. Review the LARP and update as necessary. Refer any amendments to ADB for approval. Prepare guidelines and provide training to EA staff on the implementation of the LARP. Assist the EA to implement the approved LARP including managing proper disclosure to the public, preparing detailed action plans for the delivery of compensation, ensuring that all affected parties receive payments or other rehabilitation based on the LARP and assisting the EA to hand over the Site to the Contractor free from all encumbrances. Ensure that the displaced persons are properly consulted and adequately resettled and compensated in accordance with the provisions of the LARP. This task entails among other things proper review of compensation rates and consultation with local governments and community organizations to ensure compensation at replacement cost. Ensure that the independent monitoring agencies and the implementing NGOs are hired in timely manner including preparing terms of reference and reviewing monitoring reports. Ensure that civil works commence only after the implementation of LARP and after approval of ADB on implementation of LARP. Ensure the EAs compliance with all relevant grant covenants. Assist the EA to prepare reports on LARP implementation complying with ADB requirements. 188

189 Attachment 6 (x) Any other associated tasks that the EA or ADB may require to be done with respect to social safeguards. Security Coordinator [International, 9 person-months]: The international Security Coordinator should have an extensive background and experience in the security field, with (a) preferably 10 years government, military, and/or police service, or equivalent private sector security-related experience including experience in establishing security policies and procedures relating to police/military and/or investigation agencies and good knowledge of the UN Security Management System; (b) comprehensive knowledge and understanding of the functions of multilateral donor organizations and their field operations; (c) area knowledge and experience in Afghanistan; (d) demonstrated experience in crisis management and operating in difficult circumstances and conditions; (e) strong written and verbal briefing and reporting skills including an excellent command of written and spoken English; and (e) demonstrated experience in operating in a multicultural environment. Detailed tasks include: (i) (ii) (iii) (iv) (v) Assist the Government, the EA and the Contractor to prepare the Project Security Plan. Review of the Project Security Plan submitted by the Contactor and coordination of final approval by the EA and ADB. Ongoing consultation and coordination of the implementation of the Project Security Plan with the Ministry of Interior, the EA and the Contractor. Supervision of implementation of the Project Security Plan including reporting. Preparation of the Consultant Security Plan and supervision of its implementation. Community Development Specialist [International, 9 person-months]: The international Community Development specialist should have a degree preferably in development, geography, sociology, economics, business, commerce, management or communications, who preferably has: (i) 12 years of experience or more in working directly with non-government organizations (NGOs) and community organizations at the grassroots level; (ii) field experience including the design and implementation of community engagement and development programs for conflict-sensitive development; (iii) experience of baseline condition assessment and the development of support programs to match community requirements (addressing the needs of men and women); (iv) experience in coordinating and facilitating the development of networks between communities and stakeholders; (v) experience in working in Afghanistan and working on strengthening women s participation in community development projects; (vi) experience in preparing program cost estimates, (vii) excellent command of written and spoken English; and (viii) experience in managing and monitoring projects funded by international agencies. Detailed tasks include: (i) (ii) Prepare a Community Outreach Manual for approval by the EA and ADB setting out: the goals and objectives of the Community Outreach Program; community consultation requirements, peace building initiatives and methods; minimum evaluation criteria for community-nominated sub-programs including economic and social criteria; cost allocation guidelines; supervision requirements; and, an investigation, analysis and implementation program. Design and supervise the community consultation program including identification, recruitment and tasking of suitably qualified national NGOs or other local organizations. 189

190 Attachment 6 (iii) (iv) (v) (vi) (vii) Review and analyze all sub-program proposals in accordance with approved criteria and prepare a recommended list of approved sub-programs for approval by the EA and ADB including a detailed implementation methodology, program and budget for each sub-program. Establish appropriate benefit monitoring and evaluation criteria for each sub-program in consultation with the PPBM consultant. Supervise and monitor the implementation of the sub-program and certify the payment of funds by the Contractor. Supervise and monitor the implementation of activities contained in the Gender Action Plan, and report on progress. Prepare reports on the Community Outreach Program for inclusion in the Quarterly Reports and the PCR. Resident Engineer [National, 2 persons, total 50 person-months]: The Resident Engineer shall have a degree in civil engineering with preferably 12 years of experience or more, 5 years of which in senior site supervision roles for the construction of major road works, with extensive experience in the construction of flexible road or runway pavements. Proven experience in the management and coordination of large site supervision teams is essential. An excellent command of oral and written English is required. Under the direction of the Senior Resident Engineer, detailed tasks include: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) Liaise with the appropriate authorities to ensure that all affected utility services are promptly relocated. Review the Contractor s traffic management plans. Review the Contractor s proposals for UXO clearance and supervise implementation. Carry out checks on the Contractor s setting out and ensuring that the Works are carried out in accordance with the drawings and other design details. Maintain full and detailed permanent site records including site correspondence, survey data, quality acceptance data, site diaries, measurement and certification, minutes of meetings and records of all other contractually relevant matters. Monitor the Contractors quality control procedures and laboratory testing and carrying out Independent testing as required. Ensure that Works are executed in accordance with all provisions of the Contract, including those relating to standards of materials and workmanship, health and safety requirements and environmental protection requirements. Measure the works, agree and certify interim and final payment certificates for submission to the Employer in consultation with the Team Leader, and assisting the Employer in preparing loan withdrawal documentation to ADB. Maintaining regular estimates of the cost to completion and time to completion for the Contracts. Reviewing the Contractors proposed program and technical recourses for routine, emergency and winter maintenance and provide training to EA staff who will take over quality control and administration of maintenance. 190

191 Attachment 6 (xi) (xii) (xiii) (xiv) Assist land acquisition and resettlement activities being undertaken by the Government and the provincial authorities in cooperation with the Resettlement Specialists. Prepare, with the assistance of Environmental Specialists, environmental monitoring reports for inclusion in the quarterly and annual reports. Monitor the implementation of the health and safety program on Site including the information and education campaign on sexually transmitted diseases including HIV/AIDS as required by the Contract. Ensure that no child labour is employed under the Contract. Bridge/Structure Engineer [National, 2 persons, total 50 person-months]: The Structural Engineer shall have a degree in civil engineering preferably with 8 years of experience or more, demonstrating a working knowledge in: (i) the design and construction of bridges and other structures for road projects; (ii) various structural designs and documentations including the design of all required earthworks, retaining walls, drainage and any other required structures; and (iii) supervising the work of field teams in monitoring progress, assessing quality, and certifying construction in accordance with contract conditions. Under the direction of the international Structural/Bridge Engineer, detailed tasks include: (i) (ii) (iii) (iv) (v) (vi) Design review and construction supervision of all Project structural elements, including temporary works, earthworks, bridges, retaining walls, drainage culverts and any other structures Assist with the design review of all earthworks and structural elements in the DED. Review the design of temporary works, including shuttering and scaffolding, for suitability and safety during construction. Review the construction schedule for all earthworks and structural elements, in consultation with the Materials/Pavement Engineer. Review the Contractor s proposed quality assurance and quality control systems and procedures for earthworks and structural works. Review quality control test results and certificates for all earthworks and structural elements. Materials/Pavement Engineer [National, 4 persons, Total 102 person-months]: The Materials/Pavement Engineer shall have a degree in civil engineering preferably with 8 years of experience or more in major road construction works focused on pavement engineering and materials testing. Relevant experience should include: (i) supervising the Contractor s compliance with material specifications and testing; (ii) assistance to the design team to source suitable materials; (iii) engineering design of highway or runway flexible AC pavements (iv) supervising and certifying construction in accordance with contract conditions including acceptance standards of materials, approval of source supply, establishing QA/QC procedures, setting up laboratories, mix designs and testing procedures; (v) and, a good command of oral and written English. Under the direction of the international Materials/Pavement Engineer, detailed tasks include: (i) Design review and construction supervision of all Project pavements. (ii) Design review of pavement works in the DED including proposed material specifications and sources and asphalt and concrete mix designs. 191

192 Attachment 6 (iii) Review the Contractor s proposed geotechnical investigations for pavements and pavement materials. (iv) Review and advise on all geotechnical matters during construction. (v) Review the construction schedule for all pavement works. (vi) Review of the Contractor s proposed quality assurance and quality control systems and procedures for all materials and works, including proposed sampling and testing procedures, laboratory establishment and procedures and reporting of results. (vii) Review of quality control test results and certificates for all pavement materials and works. Road Design Engineer [National, 12 person-months]: The Road Design Engineer shall have: a degree in civil engineering preferably with 10 years of experience in road design and construction; and, experience in the use of digital terrain models for road design. Under the direction of the Team Leader/Senior Highway Engineer, the Road Design Engineer shall: (i) Undertake the review of the highway design submitted by the Contractor, based on final topographic surveys and geotechnical investigations and ensure that the design complies with technical and safety standards. Site Inspector [National, 4 persons, Total 102 person-months]: Qualifications for the Site Inspectors shall include having a degree in civil engineering preferably with 8 years of experience or more in major road construction works demonstrating capability in gauging quality workmanship and appropriate construction methods. Under the guidance of the SRE/RE, the Site Inspectors shall: (i) (ii) (iii) Undertake day-to-day supervision for assigned sections of highway and structures. Monitor Contractor s work and certify the construction in accordance with established procedures. Maintain daily records of weather, labour, plant and materials on assigned sections of the Site. Accountant [National, 42 person-months]: The Accountant shall have a degree in accounting, finance, or business administration and be qualified as a chartered public accountant. A higher degree is preferable. Preferred experience should illustrate: (i) 10 years or more working in financial accounting with knowledge of public sector accounting systems/procedures, and a sound understanding of the specific development issues relevant to the host country; (ii) ability to prepare concise briefings on financial and accounting matters; (iii) ability to use a variety of computer programs and different types of software to maintain ledgers and to prepare the different types of forms and financial statements; and (iv) excellent written and oral communication skills in English. Detailed tasks include: (i) (ii) (iii) Establish procedures for the financial monitoring and reporting of the Contract in accordance with government and ADB requirements. Maintain detailed records of all financial disbursements, including assisting the EA with financial reporting to the ADB. Assist the Team Leader to review and approve the Contractor s claims for payment, variation orders and price adjustments. 192

193 Attachment 6 (iv) Provide accounting support for the administration of the consultancy contract. Quantity Surveyor [National, 2 persons, 52 person-months]: The Quantity Surveyor is a civil engineer preferably with 10 years of experience or more in the supervision of major road projects. He/she will assist the Senior Resident Engineer and Resident Engineer in daily supervision of works with a focus on assessing and checking the quantities, any required variations including justification, and verifying the monthly certificates. Detailed tasks include: (i) (ii) (iii) Measure the completed works and keep detailed records, including the measurement books. Maintain measurement data and assist in preparing the monthly IPCs. Assist the Team Leader and Contract Specialist in processing contract variations and settlement of claims. Resettlement Specialist [National, 2 persons, 20 person-months]: The Resettlement Specialist shall have a degree in the social sciences, land administration, or equivalent disciplines. Preferably with 5 years of experience or more in the preparation and execution of resettlement programs for road and infrastructure projects in the Central West region. Oral competence in local languages and customs will be an advantage. Detailed tasks include: (i) Assist the EA to implement the approved LARP including managing proper disclosure to the public, preparing detailed action plans for the delivery of compensation, ensuring that all affected parties receive payments or other rehabilitation based on the LARP and assisting the EA to hand over the Site to the Contractor free from all encumbrances. (ii) (iii) (iv) (v) (vi) Ensure that the displaced persons are properly consulted and adequately resettled and compensated in accordance with the provisions of the LARP. This task entails among other things proper review of compensation rates and consultation with local governments and community organizations to ensure compensation at replacement cost. Ensure that the independent monitoring agencies and the implementing NGOs are hired in timely manner including preparing terms of reference and reviewing monitoring reports. Ensure the EA complies with all relevant grant covenants. Assist the EA to prepare reports on LARP implementation complying with ADB requirements. Any other associated tasks that the EA or ADB may require to be done with respect to social safeguards, including relating to implementation of the LARP grievance mechanism. Environment Specialist [National, 10 person-months]: The Environment Specialist shall have a degree in environmental sciences preferably with a minimum of 5 years of experience in the preparation and supervision of environmental management and monitoring plans for road and civil works. Detailed tasks include: 193

194 Attachment 6 (i) Supervise the implementation of the EMP including verification of all environmental monitoring activities and coordinating with the Contactor to provide mitigation measures for any unexpected environmental impacts arising. (ii) Preparation of periodic and exceptional environmental management reporting. Benefit Monitoring and Evaluation Specialist [National, 6 person-months]: He/she shall have degree preferably with (i) a major in civil engineering or business administration and: (ii) 12 years of experience or more in field assignments illustrating a working knowledge project performance monitoring systems under projects funded by ADB or other multi- or bilateral donors; (ii) experience in the design and management of studies and projects; and (iii) fluency in written and spoken English. Detailed tasks include: (i) (ii) (iii) (iv) (v) Identify performance indicators to be monitored during the implementation of the Project including poverty, socioeconomic status, gender development, employment generation among others to refugees and ex-combatants, and other social and economic development activities. Establish systems for collecting data and statistics for monitoring. Carry out a baseline survey on performance indicators. Collect required data and undertake other relevant surveys before construction and immediately after completion of the Project. Incorporate findings and supporting data in the PCR in accordance with a schedule and terms of reference to be mutually agreed by the Government and ADB. Security Officer [National, Total 38 person-months]: The national Security Coordinator should have an extensive background and experience in the security field, with (a) preferably 5 years government, military, and/or police service, or equivalent private sector security-related experience including experience in establishing security policies and procedures relating to police/military and/or investigation agencies and good knowledge of the UN Security Management System; (b) comprehensive knowledge and understanding of the functions of multilateral donor organizations and their field operations; (c) area knowledge and experience in Afghanistan; (d) demonstrated experience in crisis management and operating in difficult circumstances and conditions; (e) strong written and verbal briefing and reporting skills including an good command of written and spoken English; and (e) demonstrated experience in operating in a multicultural environment. Detailed tasks include: (i) Assist with the development of the Project Security Plan. (ii) On of going consultation and coordination of the implementation of the Project Security Plan with the Ministry of Interior, the EA and the Contractor. (iii) Supervise implementation of the Project Security Plan including reporting. (iv) Supervise implementation of the Consultant Security Plan. Community Development Specialist [National, 2 persons, Total 52 person-months]: The Community Development Specialist should have a degree in development, geography, sociology, economics, commerce, business, management or communications or related fields or have demonstrated equivalent experience. Preferable experience should illustrate: (i) 8 years of experience or more in working directly with non-government organizations (NGOs), consultants and community organizations at the grassroots level; (ii) field experience including 194

195 Attachment 6 the design and implementation of community development projects in a post conflict context; (iii) baseline condition assessments and the identification community needs with a focus on assessment of infrastructure and program development to match communities requirements (of men and women), (iv) experience in strengthening women s participation in community development projects and working on gender and development issues in Afghanistan, (v) experience working with donor partners and national agencies; (vi) ability to understand basic budget and quantity matters, and (vii) good spoken and written English. Detailed tasks include: (i) Supervise the community consultation program including assisting with the identification, recruitment and tasking of suitably qualified national NGOs or other local organizations. (ii) Assist with the review and analysis of sub-program proposals in accordance with approved criteria. (iii) Supervise and monitor the implementation of allocated sub-programs and certify the payment of funds by the Contractor. (iv) Prepare reports on the Community Outreach Program for inclusion in the Quarterly Reports and the PCR. F. FACILITIES AND SUPPORT 19. Pursuant to Clause 38.1 of the General Conditions of Contract, the Client will provide: (i) one soft copy of the civil works contract documents and associated documents. In addition the Client will ensure that the Contractor provides the facilities and services described below. 20. The Contractor will provide facilities and services for the Consultant within the Works area (the Site) as defined by the Contract. Full details of these facilities and services are provided in Annex 1. The Consultant is responsible for the provision of any additional Site facilities they may require. 21. The Consultant is responsible for the provision of: (i) (ii) (iii) (iv) G. SECURITY International and local transportation outside the Site. All mobile and international communications. Any office or accommodation facilities in Kabul or elsewhere outside the Site. Any other facilities, services or support required by the Consultant. 22. The Government of Afghanistan (the Government) is responsible for the provision of overall security for the Site, in cooperation with the Contractor, in accordance with an approved Project Security Plan (the Security Plan). The Consultant will assist the Government and the Contractor with the preparation of the Security Plan. The ADB will fund the contributions of both the Government and the Contractor to the Security Plan. 23. The Consultant is responsible for reviewing and approving the Security Plan, subject to final approval by the EA and ADB. The Consultant shall coordinate the implementation of the Security Plan with the Ministry of Interior and responsible local and security authorities. As part of the Security Plan, the Contractor will provide all security within base camps and other secured facilities, funded by a provisional sum in the Contract. The Consultant will monitor compliance with and the implementation effectiveness of the Security Plan and ensure steps are taken to rectify or improve any deficiencies identified. 195

196 Attachment The Consultant is responsible for the security of its personnel outside of the Site. A detailed security plan is not required with the proposal. A Consultant Security Plan will be discussed with the first ranked bidder during contract negotiations. The Consultant Security Plan must be finalized and agreed upon before mobilization. H. Reporting Requirements 25. The Consultant will prepare and submit the following reports: (i) (ii) (iii) (iv) (v) (vi) (vii) Inception Report, including the report on the performance indicators to be monitored during at the end of the implementation of the Project, to be submitted within one month of mobilization. Report on the data-collection system and the baseline survey for the Project Performance Monitoring/Benefit Monitoring and Evaluation, to be submitted within three months of mobilization. A weekly one-page report on the progress of works and any issues related to works ( submission only). Monthly Progress Reports, to be submitted within seven days of the end of each month, to include schedules of contract payments and variation orders, graphical representations of progress against program based on the approved contract schedules, charts of physical progress on major items, relevant photographs, and details of impediments to the works and proposals for overcoming them. Quarterly Progress Report covering all aspects such as progress monitoring, quality assurance/quality control, status of any delays, contractual claims, and details of all financial projections, to be submitted within 14 days of the end of each quarter. Project Completion Report, within three months of substantial completion of the civil works contract. Maintenance Manual detailing routine and periodic maintenance tasks that will be required to maintain the completed Project, to be submitted within 12 months of commencing services. 26. The Consultant will submit the reports (except the weekly report) both electronically and in hard copy. Three hard copies will be submitted to the Government (one to the Ministry of Finance and two to the EA) and two hard copies will be submitted to the ADB (one to ADB Headquarters in Manila and one to the Afghanistan Resident Mission in Kabul). Electronic copies of reports shall be ed to all of the above parties. The weekly report shall be submitted to all parties by only. The formats of all reports are to be agreed upon. 196

197 Attachment 7 O&M PILOT SUBPROJECT A. Background 1. The pilot operation and maintenance (O&M) subproject (the Subproject) under Tranche 4 of Transport Network Development Investment Program will provide periodic maintenance for Kabul Jalalabad Road. The road is an economic lifeline of Afghanistan, as it represents a pivot section of the Afghan leg of the Grand Trunk Road and is a key section in CAREC Corridors 5 and Kabul Jalalabad roads had been damaged by heavy cargo vehicles and NATO supply convoys, with each vehicle carrying up to 70 tons of goods. However, the road has been left unattended without rehabilitation and maintenance for a long time, mainly due to lack of funding, so its condition has become deteriorating and degraded. A recent survey conducted by PMO/ MPW catalogued the shabby stretches of road cross-section and key bridges and culverts, which would require urgent rehabilitation or reconstruction. Thus, the repair/ rehabilitation of Kabul-Jalalabad Road, particularly stretches running off towards and on Jalalabad-Torkham (13-metre wide), is conceived as one of the high-priority tasks of the government. 3. The Ministry of Public Works (MPW) has demonstrated strong commitment and capacity through management and implementation of the road projects financed by ADB and other development partners. Sufficient counterpart resources have been allocated into road projects so most of the projects were successfully implemented. The MPW has also developed a strategy and in-house capacity in road maintenance area. Presently, the MPW is using its own employees in road maintenance works, as it claims that the financial and technical capacity of the Afghan private sector in road reconstruction and maintenance is still insufficient. Therefore, there is a need for the development of the private sector in road industry. 4. Considering the urgent need for periodic maintenance of Kabul-Jalalabad Road and the strong capacity and good track record of the MPW, the Subproject is expected to be the initial step of ADB in promoting sustainability in road transport sector, after over a decade of its involvement in development and reconstruction of Afghanistan. B. Objectives and Scope 5. The objectives of the proposed O&M subproject are to (i) provide periodic maintenance for Kabul-Jalalabad Road to ensure its satisfactory level of service, (ii) identify the bottlenecks causing damage to the roads and prevent susceptibility to erosion and factors attributing to perpetual damage, (iii) demonstrate the alternatives to physical design and use of local materials for preventing perpetuation and accentuation of perennial damage caused by erosion, and (iv) develop capacity in management and implementation of road maintenance of PMO/ MPW and the local contractors and hence ensure sustainability of the road sector. 6. The Subproject s scope will cover periodic maintenance for approximately 50 km of Kabul-Jalalabad Road. The periodic maintenance works will be resealing, resurfacing, overlaying or reconstructing of pavement, depending on the existing condition of that particular road section. 41 Connecting the northern countries of Kyrgyz Republic, Tajikistan, and Uzbekistan through Afghanistan to Pakistan and eventually to the southern Arabian Sea ports at Karachi and Gwadar. 197

198 Attachment 7 C. Approach and Methodology 7. The Subproject s approach will be based on the MPW s road maintenance strategy, which is to continue utilizing its own human resources until a better alternative is found. This will help the MPW keep its roads O&M labors employed while the capacity in the private sector is still being developed. As the Subproject is of small-scale and the maintenance activities are rather simple, the road will be divided into small sections and a local contractor will be contracted to carry out the work for each section under the supervision of the Subproject management/ supervision team. This is considered most effective considering that the cost and risk for security would be minimal. 8. An initial assessment of the road condition has been conducted by the MPW Maintenance Unit and the draft bill of quantities and cost estimate were prepared (Table 1). At the commencement of the Subproject, a detailed condition survey of the road will be conducted by the supervision team and the final scope of work, design drawings, cost estimate and bid documents will be prepared based on this. Subsequently, the implementation schedule of the Subproject can be prepared. D. Implementation Arrangement 9. The O&M Subproject will be implemented by the PMO, MPW, whose long experience and good track records should ensure smooth and efficient implementation throughout the Subproject s period. Management and supervision of the Subproject will be carried out by a team of PMO/MPW staff/employees led by an international consultant expert in road maintenance and asset management who will also confirm the finding of the MPW maintenance unit and apply the good practices for the O&M subproject. This arrangement will help enhance the capacity of the PMO/MPW team through a learning-by-doing process. 10. The Subproject management/ supervision team will be responsible for: conducting a detailed condition survey of the road, preparing the detailed design/methodology including the BOQ, cost estimate and bid documents for different road sections in coordination with MPW Design Department, procurement of the work, managing and supervising the contractors work, and reporting the progress to MPW and ADB. 11. The environmental and social safeguard issues and other administrative support and financial matters will be handled through the existing PMO/MPW resources. The team will comprise a team leader, two design/ supervision engineers, four inspectors and two quantity surveyors. An individual consultant will be engaged as the team leader, while the PMO/MPW will appoint the engineers, inspectors and quantity surveyors. The terms of reference for the members of management/ supervision team are as follows: (i) The Team Leader shall be a graduate in civil engineering with 20 years of experience, 12 years of which are in pavement design and construction supervision. Project management experiences are desirable. He shall be responsible for managing the team to ensure the Subproject s overall objectives are met and maintaining good coordination 198

199 Attachment 7 with the MPW, ADB and development partners. The key tasks include (i) carrying out the review of the preliminary design in coordination of the MPW Design Department (ii) finalizing all reports, organizing /chairing inception, interim and draft final report meetings and (iii) managing activities and ensuring required outputs. (ii) The Pavement Design/ Supervision Engineer shall be a graduate in civil engineering with 10 years of experience, 5 years of which are in pavement design and construction supervision. He shall (i) assess the load bearing capacity of the various existing pavement sections, including surfacing, base course, sub-base and subgrade, along project roads; (ii) based on these assessments, the team, in coordination of the MPW Design Department, shall prepare the most cost effective detailed design drawings, including construction methodology and technical specifications for periodic maintenance work. (iii) The Quantity Surveyor shall support in carrying out the road condition survey and preparing the BOQ. (iv) The Inspector shall assist the engineers in supervising the work of the contractor. 12. The implementation period of the Subproject will be 24 months. Table 1: Draft BOQ for Periodic Maintenance of Kabul-Jalalabad Road O&M BOQ (Kabul - Jalalabad Road) No Description Thickness Width, m Unit Quantity 1 Site cleaning N/A 10 LM 30,000 2 Aggregate Base Course Cum 18,000 3 Prime Coat Spraying N/A 10 Sqm 10,800 4 Asphalt Binder course Cum 10,800 5 Tack Coat Spraying N/A 10 Sqm 10,800 6 Asphalt Wearing course Cum 9,000 Filling and graveling 7 (Shoulders) Cum 3,000 Removal of existing road material (Asphalt ) and Cum 27,000 8 disposal Stone masonry work for 9 parapet wall and head walls N/A 10 Cum 2,250 Milling of existing road material (Asphalt ) and Cum 72, disposal Total Unit Price Total Price Remarks 199

200 Attachment 8 Government of the Islamic Republic of Afghanistan Ministry of Public Works June 2013 Project Name: Secondary Project Type: Geographical Coverage: Donor Beneficiaries: Partner(s): Management Site: Duration: Estimated Budget: Establishment of the Afghanistan Railway Authority: Technical Assistance, Capacity Building, and Equipment Regional Connectivity and Economic Sustainability Afghanistan European Union Delegation to Afghanistan Ministry of Public Works (MPW), Afghanistan Railway Authority (ARA), Government of the Islamic Republic of Afghanistan (GIRoA), and Young Professionals Asian Development Bank (ADB), US Department of Transportation (US DOT) Kabul, Afghanistan 3 Years $7,135, USD 200